The petrol price in SA is slightly above the global average. It's not the most expensive, but it's also not cheap! Our higher-than-average petrol price is caused by taxes, levies, and import costs. For your local business (and even your grocery bill), this means higher prices for just about everything that needs to be delivered, transported, or manufactured.
Between the year 2000 and 2024, the petrol price went up by around 335%, according to BusinessTech. That’s a staggering number that should give us all a wake-up call to start using less fuel. But what about your business? Can you really afford to cut down on fuel when it’s the lifeblood of your company? Cartrack has the answer to this pressing question, so read on.
If you compare South Africa’s petrol prices per litre with global prices, you’ll notice that our prices are slightly higher than the world’s average. Of course, this changes as the economy fluctuates, and there are numerous factors that play a part in our petrol prices (which is why they keep changing).
For an overview, we’ve included this SA petrol price comparison table. It’s reflective of how South Africa’s petrol price compares to 19 other countries as of Oct 2025
As you can see, when it comes to African countries, our petrol prices aren’t that different. However, it’s important to remember that the more developed a country is, the more it will pay for petrol (generally speaking).
No, richer countries don’t always have higher petrol prices, but they usually do. That’s because wealthier nations often add higher taxes to discourage fuel use and fund public services. However, some rich countries have lower prices due to local oil production or government subsidies, so petrol costs can still vary widely even among wealthy nations.
Why is this?
This happens because petrol prices are affected by more than just the wealth of a country. It also depends on local oil production, government subsidies, exchange rates, and taxes. Even a rich country (like the US) can keep prices low if it produces a lot of oil or subsidises fuel. Poorer countries that have to import petrol might face higher costs.
South Africa currently ranks at 65th for petrol prices in terms of the rest of the world. Above us at 66th is Thailand, and at 67th is Jamaica. Below us at 63rd is Fiji, but of course this keeps changing as the market fluctuates.
In South Africa, taxes and levies make up around 40% to 50% of the petrol price per litre. These 'taxes' are made up of 3 factors:
The remainder covers the actual cost of importing or producing the fuel, as well as retail profits at your local garage, and distribution costs.
So what does all this mean for you as a business owner in South Africa? More importantly, how can you save on YOUR company fuel costs? Let’s find out.
South Africa’s petrol price affects international trade by affecting our transport and export costs. So when local and international fuel prices go up, it becomes more expensive to take goods in and out of SA. Subsequently our products become less competitive. It also increases import costs, and raises prices for businesses as well as consumers.
So how does this affect your business? Also, who gets more affected; small businesses or big ones?
Your South African business is affected by higher transport costs, which always leads to higher running costs in general. You’ll spend more on deliveries, operations, and employee salaries (due to higher transport and grocery prices). These costs cut into your profits and force you to raise your own prices just to stay competitive.
Many people have some misconceptions about this, so let’s fact-check a few things, shall we?
Myth 1: Petrol prices only affect transport businesses.
Fact: Even if your business doesn’t rely on vehicles, higher fuel costs still raise prices for everything that's bought and sold. Suppliers charge more for delivery. Workers spend more getting to work. All of this raises your overall running costs.
Myth 2: Small price increases at the pump don’t really matter.
Fact: Even a small rise in SA's petrol price adds up fast (think per tank, not per litre). After a while it increases every company's delivery fees, their own supplier costs, and of course the salaries of the people who work there. This slowly eats into everyone's profits and can force you to raise your own prices to keep money on the same level.
Myth 3: Businesses can easily absorb higher fuel costs.
Fact: There are actually thousands of South African businesses that work on very tight margins. Sudden fuel price hikes hit hard and when they do, companies often have to cut expenses somewhere else. They may have to:
Want to save on your company fuel costs? Our customers save up to 24% of their monthly fuel bill just by implementing a few easy strategies. Call Cartrack now to find out how you can too.
Smaller companies struggle more than larger businesses when petrol price shocks happen. That’s because smaller companies are usually less established than those that have been around for a long time. It’s also because of tighter budgets, which may cause cutbacks of various kinds when petrol goes up.
To mitigate petrol cost risks, your business can implement strategies like:
Smart systems like these are worth investing in, especially with fuel prices as high as what they are in South Africa.
Because fuel prices are so high (and always going up), your business can’t afford to lose fuel because of fraud or theft. Fuel sensors detect and monitor every drop of fuel that enters or exits your vehicles, showing you if there are any discrepancies.
A fuel management system saves you on petrol costs by:
You can digitise everything fuel and admin related at your company by using fleet management software. It’s great for smaller companies that only need some of the features, and also perfect for larger or growing companies that need in-depth digitalisation.
Yes, South Africa’s status as an oil importer does affect our petrol price. Since the country buys most of its crude oil abroad the exchange rate changes influences what YOU pay at the garage. When the rand weakens or oil prices rise, SA’s fuel costs increase (sometimes on a monthly basis).
Fuel prices in South Africa are updated every month. The Department of Mineral Resources and Energy reviews international oil prices, shipping costs, and the rand–dollar exchange rate to decide the new price. These changes are usually announced at the end of each month and take effect on the first Wednesday.
Yes, petrol price increases or decreases do contribute to global and local inflation. When fuel prices rise, transport and production costs go up for most goods and services. This leads to higher prices in shops, especially for food and essentials, making it more expensive for you and other consumers to maintain your daily living costs.
Discover how South Africa’s petrol prices rank against the rest of the world and what this means for local businesses. Learn how fuel costs affect transport, operations, and pricing in today’s economy
