Petrol price: SA still OK

Jul 08 2013 15:14
Cape Town – Motorists countrywide are always complaining about the high cost of petrol, which affects everything from the price of food to the cost of a train or bus ticket.

Fin24 has undertaken a comparison between what petrol costs in the top 10 countries where motorists pay the most for a litre of fuel and the South African price.

For this comparison, all overseas quotes have been converted from British sterling to the rand at Monday's exchange rate of  R15.20/£.

South African motorists were shocked last week when the pump price for a litre of petrol increased by 84c/litre and the price of diesel by 78c/litre.

This increase took the Gauteng retail price per litre to R13.00 and R13.23 for 93 and 95 unleaded respectively, while motorists at the coast are now forking out R12.80 and R12.86 for 93 and 95 unleaded respectively.

Economist Mike Schüssler pointed out that July is going to be a tough month for consumers, because municipal electricity increases usually also happen in this month. He had anticipated a petrol price hike of around 90c per litre.

Based on international oil prices and the rand exchange rate, early indications are that motorists can expect a further increase of 60c for a litre of petrol come August 7.

In a Bloomberg survey conducted in March, it was established that South Africa ranked 41st in the most expensive fuel price index.

In the latest fuel survey Norway, where motorists paid up to R25/l, was the country with the priciest fuel. It is unusual, in that it's the only major oil producer with expensive fuel.

Instead of subsidising fuel at the pump, the country uses its oil profits for services such as free college education and savings for infrastructure improvements.

Norway also tried to discourage driving by heavy taxation of fuel to decrease pollution and combat climate change.

Despite being close to the Suez Strait with oil-rich countries such as Egypt and Syria, Turkey followed Norway, also at R25/l, according to This is Money's third annual world's most expensive petrol index.
Turkey was followed by the Netherlands at R23/l; Italy, Sweden, Greece, France and Portugal at R22/1 and finally Belgium and Germany at R21/l.

Countries visited by South Africans in numbers include Britain and if visitors hire a car, they would pay about R20.30/l.

*Are you a South Africa living abroad? Tell us how much do you pay for petrol? Send your response to editor@fin24.com

 - Fin24


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cape town  |  economy  |  petrol



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