Motorists have felt the effects of escalating fuel prices in recent months, with the inland petrol price recently reaching a record R16 a litre. These seemingly astronomical prices have largely been attributed to a weaker rand as well as higher international fuel prices. It must also be noted that a large portion of our price is attributable to taxes and levies.
Having already felt the pinch of a deteriorating economy and rising prices in general, these increased petrol prices have been a hammer blow to the pockets of many motorists
However, is the cost of petrol in South Africa really more expensive than the rest of the world? Let’s examine whether this is really the case:
Venezuela has been rated the country with the cheapest petrol price at 13 cents per litre. However, this incredibly cheap price must be viewed against the context that this price has come about due to a fervent socialist policy that has crippled the country ‘s economy over the last few years, with many motorists not even able to afford this price. Iran is second with a price of R3.94 per litre. Comparatively, South Africa stands at number 90 of 167 countries. As such, our fuel price is middling in international terms.
Most expensive prices
The island nation of Iceland has the planet’s most expensive petrol price at R28.12 per litre. Hong Kong, which is an autonomous territory in south-eastern China, is ranked as the second most expensive, with petrol setting motorists back R27.86 a litre.
So how expensive is our petrol, comparatively?
While our petrol prices are not that expensive when compared to developed nations, they are expensive when compared to developing nations. Many other African countries pay far less for fuel than us, with Nigeria, Sudan and Egypt, all paying less than R6 per litre, while Botswana, Mozambique, Tunisia, Ethiopia and even Lesotho all pay cheaper fuel prices. However, we’re still sitting pretty compared to Zimbabwe and Mauritius, where you have to pay R18.66 and R19.97 per litre of petrol, respectively.
Are our petrol prices affordable?
It’s important to not only consider the actual price but evaluate its affordability for the average South African citizen. South Africa ranks at number 56 in terms of affordability, with Bloomberg noting that the average South African has a daily income of R237.53. As such, consumers have to fork out 5.98% of that daily income in order to simply afford 1 litre of fuel.
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Motorists have felt the effects of escalating fuel prices in recent months, with the inland petrol price recently reaching a record R16 a litre. These seemingly astronomical prices have largely been attributed to a weaker rand as well as higher international fuel prices.