Petrol Price Hits Record High: 95 Unleaded Breaks R30 a Litre Inland

South African motorists are waking up to a grim new milestone at the pumps. From midnight, the price of 95 unleaded petrol inland has crossed the R30 per litre mark for the first time, setting a fresh national record. Coastal regions, including Cape Town, have been spared the worst of the increase for now, but prices here remain only marginally lower and are expected to follow the same upward trajectory in the months ahead.

The latest hike has reignited public frustration over the structure of fuel pricing in South Africa, with commentators and ordinary citizens alike questioning how much of the cost at the pump is actually tied to global oil markets versus domestic taxation and levies.

What’s Actually in a Litre of Petrol?

A breakdown of the fuel price structure shows that taxes and levies make up a significant portion of what drivers pay, regardless of international oil price movements. Two levies in particular have drawn scrutiny:

• The General Fuel Levy, currently sitting at R4.10 per litre, which is not ring-fenced for road infrastructure but instead flows into general government revenue, to be allocated as Treasury sees fit.
• The Road Accident Fund levy, at R2.25 per litre, which is intended for a specific purpose but has failed to keep pace with the fund’s liabilities. The RAF reportedly collects more than R45 billion annually while still carrying long-term liabilities of around R387 billion.

Both levies are adjusted annually through the national Budget process, meaning increases are policy decisions rather than direct responses to crude oil prices or currency fluctuations. Both levies rose again this April, continuing a pattern critics say has disconnected local pump prices from actual global fuel cost trends over the years.

Why Drops Don’t Match the Hikes

One of the most common complaints among South African drivers is the asymmetry between price increases and decreases. When global oil prices ease, consumers often see only marginal relief at the pump compared to the steep increases experienced when prices rise.

A recent example cited by commentators: in July, falling oil prices should have translated into a litre price drop of roughly R3.50. Instead, motorists saw a reduction of only R1.96, largely because R1.50 of fuel levy increases were reinstated in the same month, effectively cancelling out much of the relief.

The Bigger Picture for South African Youth

The fuel price surge lands particularly hard on younger South Africans, a demographic already grappling with an unemployment rate of 47.4% among those aged 15 to 34, according to Statistics South Africa. Rising transport costs compound an already difficult cost-of-living crisis, with knock-on effects for mental health, household budgets, and access to work opportunities.

For Cape Town residents, the immediate pinch may be slightly softer than inland areas for now, but the broader pattern of levy increases outpacing relief suggests coastal relief is likely to be short-lived. Commuters relying on private vehicles, as well as businesses dependent on logistics and deliveries, are bracing for further cost pressures as the fuel levy structure remains largely unchanged heading into the new financial year.

Source: Petrol 95 hits R30+ a litre inland from midnight tonight. A new record. — Medium