Unaweza kujiuliza kwanini mfanyabiashara anatoka Dar anakwenda kununua nguo Kampala wasio na Bandari?
Umewahi kujiuliza kwanini watu wa Mbeya na Songwe wananunua mafuta Malawi au Zambia wakati hayo mafuta yameshukia Bandari ya Dar???
How are petrol prices calculated?
According to South African Petroleum Industry Association, the government regulates the petrol retail price. It’s changed every month on the first Wednesday of the month. The Central Energy Fund on behalf of the Department of Energy facilitates the calculation of the new price.
The petrol pump price is made up of a number of price elements and these can be divided into international and domestic elements.
There are two factors that influence the price of petrol, namely external and internal:
External factors: The exchange rate – that is the price of the dollar vs the rand.
Internal factors: These include rising prices in crude oil, transport costs, and taxes and levies.
How does the cost of fuel in South Africa compare with the rest of the world?
At the beginning of June 2018, the price of fuel rose to a record high, with petrol increasing by 82 cents and diesel by 85 cents.
When you examine how South Africa compares with 60 other countries around the world about the price of petrol, affordability and income spent on fuel, the results are both interesting and, eye opening…
How does the petrol price in South Africa, compare to the rest of the world?
The latest figures from
globalpetrolprices.com show that the average price of fuel around the world is 1.17 US dollar per litre (R15.37).
According to
Bloomberg data for the first quarter of 2018, South Africa ranks 20th alongside 60 other countries in terms of the price for 1 litre of petrol.
But one needs to consider that, as a general rule, richer countries have higher prices whereas the poorer countries (and those that produce oil) have significantly lower prices. The only exception is the US, which has an advanced economy, but low fuel prices. The difference in pricing is due to each country’s taxes and subsidies for fuel so basically, we all pay the same for fuel on the international market, but then decide to impose different taxes.
According to globalpetrolprices.com, the country with the cheapest petrol price is Venezuela, ranked first, with a petrol cost of 13 cents per litre. Iran is second with a petrol price of R3.94 per litre. On this list, which lists 167 countries, South Africa is sitting at number 90.
Hong Kong, an autonomous territory in south eastern China, is ranked second to last, with petrol costing them R27.86.
Iceland has the planet’s most expensive petrol at R28.12 per litre.
What is aggravating to know is that many other African countries are paying far less for fuel than we do. Countries like Algeria, Nigeria, Sudan and Egypt, all pay less than R6 per litre. Other countries like Mozambique, Botswana, Ethiopia, Tunisia and even Lesotho all get their fuel cheaper, too.
We are still looking better than places like Zimbabwe though who have to fork out R18.66 per litre or petrol and if you are in Mauritius, you are looking at R19.97.