South Africa pays R1.37 higher than the global average for every litre of petrol.
To the dismay of all road users, the SA fuel price is expected to reach unprecedented heights in the coming months as a direct consequence of the Russo-Ukrainian conflict. We thought it would be a good idea to further divulge the comparison with other global countries to see where South Africa stands.
South Africa pays R1.37 higher than the global average for every litre of petrol.
First and foremost, all countries pay the same price for petroleum on the international market. Internal taxes, levies and geographical location factor into differences for cost in each country. Since crude oil is valued and determined in American Dollars, it fluctuates for each country as national economies are constantly evolving. In other words, a better performing economy against the Dollar will yield better value for imported crude oil.
A general rule is that richer countries have higher prices while poorer countries have significantly lower prices. Exceptions to this rule are oil producing and exporting countries as well as the United States of America that enjoy a naturally lower price for dealing with the commodity.
One of the latest reports by globalpetrolprices.com which was published on the 7th of March places the average price of gasoline globally at R19.87 per litre. Venezuela enjoys the cheapest cost of petroleum with citizens of the Socialist regime paying as little as R0.38. This is because the South American country holds the largest oil reserves in the world and accounts for 96% of their export income.
A graph depicting how SA’s fuel price compares globally.
On the opposite end of the spectrum is Hong Kong which pays an eye watering R43.47 per litre. The reason for this in the special administrative region of China is that its government entices less car ownership in favour of public transport through high taxes, import duty, government taxes, wages, marketing and overhead expenses on petroleum companies.
Out of 170 countries listed, the SA fuel price places at 104th with a listed figure of R21.24 per litre. While it is only R1.37 higher than the global average, our landlocked neighbours in Botswana and coastal compatriots in Mozambique only pay about R16.60 per litre which is why there is outcry from the public to review our levies and taxes. The AA has created a petition which intends to review the fuel prices to mitigate mismanagement of funds of the essential commodity.
Keyword: How the SA fuel price compares to the rest of the world