Petrol Price Hits Record R30+ a Litre Inland — Durban Drivers Feel the Pinch Too

South African motorists are waking up to another painful milestone at the pumps. From midnight, the price of 95 octane petrol inland has crossed the R30 a litre mark for the first time, setting a new record high. Coastal regions, including Durban, are not far behind, with local prices tracking closely on the heels of the inland figure.

The latest increase comes after a turbulent few months for global oil markets, with ongoing conflicts overseas pushing up the basic fuel price. But a closer look at the breakdown of what South Africans actually pay for a litre of fuel shows that international oil prices are only part of the story.

What’s really in the price of a litre

Government-imposed levies make up a significant chunk of the pump price, and these are set annually in the national Budget rather than fluctuating with the oil market. Two levies in particular account for a large share of the cost:

• The General Fuel Levy adds R4.10 to every litre. Despite the name, this money is not ring-fenced for road maintenance or infrastructure — it flows into general government revenue and can be spent at Treasury’s discretion.
• The Road Accident Fund (RAF) levy adds a further R2.25 per litre. This is the one levy with a defined purpose, generating more than R45 billion annually. Yet the RAF reportedly still carries long-term liabilities of around R387 billion, raising questions about where the money is going despite consistent collection.

Both levies were increased again this April, independent of what crude oil prices or the Rand exchange rate were doing at the time — a reminder that fuel price hikes in South Africa are not purely a function of global markets.

Increases up, decreases down

A recurring frustration among motorists and commentators is the asymmetry between price increases and decreases. In July this year, a drop in international oil prices should have translated into a fuel price cut of roughly R3.50 a litre. Instead, consumers saw a decrease of only R1.96, after R1.50 of additional fuel levy was reinstated in the same month — effectively clawing back much of the relief before drivers felt it.

The cost-of-living squeeze

For many South Africans, particularly younger citizens already battling high unemployment — Stats SA figures put the jobless rate among 15 to 34-year-olds at around 47.4% — rising fuel costs add further strain to household budgets already stretched by food, transport and electricity costs.

Higher fuel prices tend to ripple through the broader economy, pushing up the cost of public transport, groceries and other goods that rely on road freight. For Durban residents commuting across the metro or relying on taxis and buses, the knock-on effects of this latest increase are likely to be felt within days.

With global oil markets remaining volatile and local levies showing no signs of easing, calls are growing for greater transparency around how fuel levy revenue is collected and spent, and whether South Africans are getting value for the taxes embedded in every litre they buy.

Source: Petrol 95 hits R30+ a litre inland from midnight tonight. A new record. — Medium