Calculating the Fuel Price in South Africa

There are various components involved in calculating of fuel price in South Africa.

To understand these various components, levies and costs involved in calculating the fuel price, we will be unpack these components together:

  • Secondary Storage
  • Secondary Distribution
  • Zone Differential Costs
  • IP Tracer Levy
  • Fuel Levy
  • Customs and Excise Levy
  • Road Accident Fund Levy
  • Petroleum Product Levy
  • Slate Levy
  • Demand Side Levy
  • Pump Rounding Levy

SECONDARY STORAGE

This component makes provision for the storage costs. This provision is in place for the product to ship from the coastal areas inland and to store the product safely. These costs are calculated separately for inland petrol and for coastal petrol.

SECONDARY DISTRIBUTION

This component makes provision for the transporting of the product from the secondary storages to the fuel stations. This is known as the secondary transport cost that excludes the main pipeline between Durban and Johannesburg. Costs associated with the distribution and delivery to end-users, in particular the retail petrol station.

ZONE DIFFERENTIAL COSTS

This component makes provision for the transporting of the product between the different zones within the country. The country is divided into different zones with different fuel pricing. This component allows for the different zones to cover their specific running costs. 

IP TRACER LEVY

This specific levy will be charged on Diesel. This is the precautionary dye in paraffin to try and avoid mixing of the two products.

This Levy therefore reimburse the oil industry for buying IP tracer dye and to inject it into IP to reduce the mixing of IP and diesel

FUEL LEVY

This specific levy is determined by the Minister of Finance and this levy is the tax and the funds goes to national treasury.

CUSTOMS AND EXCISE DUTY

This specific costs is the import of the product and is per agreement with the various unions. This agreement includes what needs to be levied and is transferred to them.

ROAD ACCIDENT FUND LEVY

This specific levy is paid over to the road accident fund to assist in payouts for motorists that are in road accidents in South Africa.

PETROLEUM PRODUCT LEVY

This is a component in the fuel price determined by NERSA (National Energy Regulator of South Africa). This cost compensates for the fuel transported through the pipeline.  

The levy therefore reimburse the pipeline owners as per NERSA tariff on transporting fuel through the pipeline.

SLATE LEVY

This levy is charged and used to compensate for all the under recoveries and losses incurred within the Petroleum Industry.

DEMAND SIDE MANAGEMENT LEVY

This levy is charged to the inland users of Petrol 95. This levy intend to discourage the use of Petrol 95 and encourage the use of Petrol 93 in inland areas.

PUMP ROUNDING

This cost is included to round off the decimals to nearest cent.

Example: Calculating Petrol OCTOBER 2021

Petrol 95
ULP
c/I
Petrol 93
ULP & LRP
c/I
Wholesale Margin40.50040.500
Secondary Storage27.20027.200
Secondary Distribution15.80015.800
Router Differential0.0000.000
Retail Margin227.300227.300
Zone differential in Gauteng64.90064.900
IP Tracer levy0.0000.000
Fuel levy393.000393.000
Customs & excise duty4.0004.000
RAF levy218.000218.000
Petroleum Products levy0.3300.330
Slate levy13.16013.160
DSML10.0000.000
Pump Rounding0.5000.500
Sub-total1 014.6901 004.690
Contribution to the Basic Fuel Price818.310806.310
Retail Price1,833.001,811.00

Example: Calculating Diesel OCTOBER 2021 

Diesel 0.005% S c/l
Wholesale Margin77.660
Secondary Storage27.200
Secondary Distribution15.800
Router Differential0.000
Retail Margin0.000
Zone differential in Gauteng64.900
IP Tracer levy0.100
Fuel levy379.000
Customs & excise duty4.000
RAF levy218.000
Petroleum Products levy0.330
Slate levy13.160
DSML0.000
Pump Rounding0.000
Sub-total800.150
Contribution to the Basic Fuel Price775.030
Wholesale Price1,575.180

GASPET is always willing to inform customers of price changes and additional costs involved in the selling of fuel. If any customer requires further information, GASPET can help. Do not hesitate to contact GASPET at any time for more information.