Petrol price in South Africa is determined by a number of factors. What is affecting petrol prices right now and how are petrol prices calculated in South Africa? In South Africa, there’s always petrol price increase now and they. In this article, you will learn how the petrol price in South Africa is calculated.
ALSO READ: Beryl Group acquires 100% stake in Eyethu Coal
What is a Petrol Price?
A petrol price is the amount of money expected, required, or given in payment for petrol. The fuel price is the sum of all the values that motorists give up to gain the benefits of having or using a product or service, which is the fuel.
Historically, the fuel price has been the major factor affecting buyer choice and motorists. Without doubt, petrol price in South Africa has a direct impact on the firms profitability.
ALSO READ: Top 10 most expensive cars in the world
How Petrol Prices Are Calculated in South Africa
According to South African Petroleum Industry Association (SAPIA), the petrol retail price is regulated by government and changed every month on the first Wednesday of the month.
In South Africa, the Central Energy Fund (CEF) calculates the new petrol price on behalf of the Department of Energy (DOE).
The international and domestic elements influence the petrol pump price.
“The international element, or Basic Fuel price (BFP), is based on what it would cost a South African importer to buy petrol from an international refinery and to transport the product onto South African shores. The diesel retail price is not regulated. The retail margin is estimated to be similar to regulated retail margin on petrol” – SAPIA says
Petrol Price South Africa
How to check latest Petrol Price South Africa? You can visit https://aa.co.za/fuel-pricing/ to view the latest fuel price fluctuations in South Africa. They list the latest fuel price fluctuations for your convenience to ensure that you stay abreast of your financial expenses.
The fuel price trend will help you stay up to date with the latest fuel price fluctuations in South Africa. The table also shows the previous petrol price in South Africa.
You can also filter the fuel price in ‘years’ so that you can check previous fuel prices in the country.
The Pricing System in South Africa
What determines petrol price in South Africa? According to South African Petroleum Industry Association, there are two main constituents of the prices of controlled petroleum products and they are:
- The external factors – the dollar price of the product on world markets multiplied by the US$/R exchange rate.
- The internal factors – the rand-based retail and oil company marketing margins, transport costs and taxes and levies.
Image Courtesy: www.thesouthafrican.com