How much fuel really costs vs what consumers pay
Just how much more do consumers pay for fuel than the Basic Fuel Price?
South Africans can once again rejoice after reports that another decrease in the fuel price is expected in July.
According to Jacaranda FM News, fuel prices significantly dropped in June due to the stronger rand and lower oil prices, and this trend is expected to continue.
Based on the unaudited data from the Central Energy Fund (CEF), the AA forecasts a drop of around R1.15c per litre in both grades of petrol.
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At the same time, Diesel is expected to decrease by around 55c per litre.
The AA did warn that numbers could change ahead of the official adjustment by the Department of Mineral Resources and Energy at the end of the month.
Although the continued drop in fuel prices is welcomed with open arms, there is no denying that fuel prices are financially crippling to some consumers.
Just like almost anything in life, the price consumers pay for fuel is also not the "real" price or the Basic Fuel Price (BFP).
According to Top Auto, the BFP is the price South Africa pays other countries per litre of fuel.
Based on the June 2024 BFP shared by Shell, the BFP only accounts for around 53-63% of the prices consumers pay for petrol and diesel in the country.
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The remaining 36-46% comprises other costs such as secondary storage and distribution, wholesale and dealer margins, and, importantly, taxes and levies.
So, what is the actual price of fuel before all the extras?
Based on data from Top Auto in June, the BFP per fuel type was:
- Petrol 93 – R12.76 per litre
- Petrol 95 – R13.10 per litre
- Diesel 0.05% – R12.59 per litre
- Diesel 0.005% – R12.77 per litre
Shell also shared a composition of the retail price of petrol and the wholesale prices for diesel in both inland and coastal areas for the period 05 June 2024 to 02 July 2024:
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