WHAT TO EXPECT

Are you looking for detailed information and insights about why is petrol so expensive in South Africa? Read on to find out more.

Have you ever sat and wondered why petrol prices actually increase and who actually determines the price?

I am a new driver myself, and it still shocks me how much I spend on fuel every week just doing my daily commutes to University and back home. But while I was pouring petrol recently, I thought, no man, why is this so expensive?

Is it because of the tedious process of making fuel?

Not mainly.

Why does petrol get more expensive?

South Africa’s fuel prices are influenced by a few major things.

International Fuel Prices

South Africa is affected by what happens in the international fuel market. When international oil and refined fuel prices go up, South Africa can also end up paying more for fuel.

The Rand and the Dollar

Fuel is traded internationally in US dollars. So when the rand weakens, we need more rands to buy the same amount of fuel.

Taxes and Other Costs

The price also includes government taxes and levies, as well as costs involved in shipping, storing, transporting and selling the fuel.

So who actually determines the price?

South Africa uses a regulated fuel pricing system. The monthly price adjustment is announced by the Minister of Mineral and Petroleum Resources based on the regulated pricing formula. They are not simply choosing a price out of nowhere. The formula takes international prices, the exchange rate and local costs into account.

Does Making Fuel Affect the Price?

And yes, making and refining fuel does cost money, but it is only one part of the bigger picture.

Can South Africa make its own petrol?

South Africa does make and refine some of its own fuel, but we simply don’t produce enough to meet all our needs. So we also rely on imported crude oil and finished fuel, which means what happens to international fuel prices still affects us.

Basically, it is a chain reaction. Something happens internationally, the exchange rate moves, costs change, and eventually we feel it at the petrol station, yea no.

Sources

Related: Chinese Cars in South Africa: Why Are They So Popular in 2026?