December 8, 2021

How South Africa’s record petrol prices compare to other countries

The most recent information from the Central Power Fund reveals that South African motorists can anticipate a small minimize in gas prices in September – nevertheless, this would supply solely a slight reprieve from pump prices which might be at the moment at all-time highs.

For August, the value of 95-grade petrol elevated to a record excessive of R18.20, from R17.29 per litre in July.

ULP95 value R14.86 a litre in January, that means prices have elevated by almost 23% in simply seven months since. The value enhance of 91 cents per litre included an adjustment to the slate levy of 6.58 cents per litre.

The CEF’s newest information factors to a possible minimize of 10 cents per litre for ULP95 in September – nevertheless, this won’t be sufficient to push prices again under R18.00.

Unions and motoring associations have referred to as for presidency intervention on South Africa’s excessive gas prices, with economists warning that pump prices are piling on the stress for households which might be already struggling financially.

The Congress of South African Commerce Unions (Cosatu) has referred to as for brand new laws to introduce a gas worth cap, saying it’s nonetheless ready on the federal government to current its analysis on the device, promised again in 2019.

Other teams, such because the Car Affiliation and commerce union Solidarity have referred to as for presidency intervention on gas taxes, which they are saying needs to be minimize to deliver speedy reduction to customers.

Present estimates present that round 40% of the petrol worth goes to some type of authorities taxation, totalling R6.26 per litre.

Citing the Shopper Value Index (CPI) figures revealed by Statistics South Africa in August, Solidarity highlighted that meals and gas inflation is increased than the headline CPI fee of 4.6% – particularly with gas changing into alarmingly dearer with a fee of 15.2%.

The union stated that the excessive gas worth is likely one of the few figures the state can straight affect. Not solely may the gas worth be straight affected by lowering the gas levy specifically, however other prices – equivalent to meals – would even be considerably decreased, as the price of getting objects to customers could be cheaper.

“People must travel, and people must eat. To incur these costs is unavoidable. Almost all products and services are also dependent on transportation,” the union stated.

South African petrol worth vs the world

In accordance to information tracked by GlobalPetrolPrices.com, South Africa’s gas prices are excessive in contrast to the worldwide common (~R12.20 per litre) however nonetheless sits someplace within the center on a world scale.

Averaging round $1.18 per litre (~R18.00), South Africa ranks 71st general (out of 157 countries) when it comes to direct gas prices. Lebanon carries the best worth per litre, averaging round $4.35 per litre (~R65.00), whereas countries like Venezuela and Iran have prices beneath R1 per litre.

Nevertheless, direct prices don’t inform the complete story, as many countries earn a lot increased incomes than others.

When expressed as a proportion of common each day earnings (GDP per capita, adjusted for buying energy parity), South Africa jumps to having the 53rd costliest gas prices, with the common individual having to spend 3.55% of their each day earnings for a single litre of petrol.

Utilizing this metric, it’s not shocking to see that poorer nations with low GDP per capita have a tendency to have a worse time. For instance, residents of the Central African Republic would want to spend nearly 80% of their each day earnings on a single litre of petrol.

On the other finish of the spectrum, in fuel-abundant countries like Iran, Qatar, the UAE, and many others., barely half a p.c of common each day earnings goes to a single litre of petrol.


Methodology

Petrol prices are supplied by GlobalPetrolPrices.com and are for 95-octane from the ultimate week in every quarter listed. Prices had been transformed rands at a fee of R15.23, recorded on 25 August 2021. Revenue figures are GDP per capita is adjusted for buying energy parity, as reported by the World Financial institution, reflecting the newest out there yr (2019/2020). World common gas worth is as recorded by the Worldwide Power Company in 2021. The total dataset could be seen right here.


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