Introduction

 

Fuel is one of the most critical foundations of South Africa’s economy. It powers transport systems, food supply chains, logistics networks, emergency services, and public transportation.

 

When fuel prices rise, the cost of everything rises.

 

From taxi fares and food prices to construction materials and small business operations, fuel costs affect every South African citizen regardless of whether they own a vehicle.

 

Yet despite its importance, the system determining fuel prices remains complex, poorly understood by the public, and insufficiently transparent.

 

South Africans deserve clarity, accountability, and a long-term strategy for national energy security.

 

How Fuel Prices Are Determined

 

Fuel prices in South Africa are regulated by the government through a formula administered by the Department of Mineral and Petroleum Resources.

 

This formula includes multiple components:

 

* International oil prices

* Import and shipping costs

* Fuel taxes and levies

* Storage and transport infrastructure

* Wholesale and retail margins

 

This system means the price at petrol stations is not set by individual businesses but through a regulated national pricing mechanism.

 

Fuel Taxes Paid by South Africans

 

Every litre of fuel includes significant government levies.

 

Two of the largest are:

 

General Fuel Levy

 

This levy goes directly to the national treasury and is not specifically allocated to road infrastructure.

 

It generates tens of billions of rand annually for government revenue.

 

Road Accident Fund Levy

 

The Road Accident Fund levy is included in every litre of petrol and diesel sold.

 

This levy funds compensation for victims of road accidents.

 

However, concerns have been raised over the years regarding financial sustainability, governance challenges, and administrative costs within the fund.

 

Combined, fuel levies add over R6 to every litre of petrol sold.

 

This represents a significant tax burden on citizens and businesses.

 

Energy Security Concerns

 

South Africa’s energy security has also been affected by the decline of domestic refining capacity.

 

Several major refineries have halted operations in recent years, including facilities such as the:

 

* Sapref Refinery

* Astron Energy Refinery

 

As a result, South Africa now imports a large portion of its refined fuel.

 

This increases dependence on global markets, shipping routes, and currency fluctuations.

 

Such reliance makes the country more vulnerable to international price shocks and supply disruptions.

 

Strategic Fuel Reserves and Transparency

 

South Africa maintains strategic oil reserves to protect the country during global supply disruptions.

 

These reserves are managed through institutions linked to the national energy system.

 

Past controversies surrounding the sale of strategic fuel reserves have raised public concerns about transparency and governance.

 

Energy security assets must be protected with the highest standards of accountability.

 

Why Fuel Prices Matter for Every Citizen

 

Fuel prices influence the cost of nearly every product and service in the economy.

 

Higher fuel prices contribute to:

 

* Increased food prices

* Higher public transport fares

* Increased logistics costs

* Higher inflation

 

In a country already facing economic challenges, transparency and responsible management of fuel pricing systems are essential.

 

Our Demands

 

We respectfully call on the Government of South Africa and relevant institutions to take the following actions:

 

1. Independent Review of the Fuel Pricing Formula

 

Conduct a transparent and independent review of the current fuel pricing model to ensure it reflects modern economic realities.

 

2. Full Public Transparency

 

Publish clear monthly breakdowns showing how each component contributes to the final fuel price.

 

3. Oversight of Fuel Levy Revenue

 

Provide detailed reporting on how revenue from the General Fuel Levy and Road Accident Fund levy is used.

 

4. Strengthen Energy Security

 

Develop a national strategy to rebuild domestic refining capacity and reduce reliance on imported fuel.

 

5. Protection of Strategic Fuel Reserves

 

Ensure strategic energy assets are protected through strong governance and transparent oversight.

 

Closing Statement

 

Fuel is not a luxury.

 

It is the backbone of South Africa’s economy and essential to the daily lives of millions of citizens.

 

South Africans deserve transparency, accountability, and long-term planning when it comes to such a critical national resource.

 

We call on our leaders to act in the public interest and ensure that fuel pricing policies serve the long-term stability and prosperity of the country.