Cape Town - With the most recent petrol price increase to over R26 a litre and marking South Africa's highest ever petrol price, here are five things South Africans need to know about petrol prices from around the world.
Where does South Africa rank in petrol prices globally?
According to the data released by analytics company Global Petrol Prices earlier this week, South Africa ranks 73rd, with the most expensive petrol prices per litre. The data indicates that the average price of petrol around the world is R24.74 (US$1.44) a litre.
"With a substantial difference in prices among countries, a general rule to note is that richer countries have higher prices while poorer countries and the countries that produce and export oil have significantly lower prices," read the statement by Global Petrol Prices.
It added that the differences in prices across countries are due to the various taxes and subsidies for petrol, and while all countries have access to the same petroleum prices of international markets, it depends on how individual countries decide to impose different taxes.
Country's with the most expensive petrol prices
With this in mind, Hong Kong ranked as the country with the most expensive petrol price at R51.96 (US$3.024), followed by Iceland R42.39 (US$2.467), Norway at R41.17 (US$ 2.396), Israel at R40.89 (US$ 2.380) and Denmark R40.43 (US$2.353).
Other notable countries such as the Netherlands marked their petrol price at R39.52 (US$2.30), US R22.30 (US$1.298), Switzerland R38.44 (US$2.237), UK R38.95 (US$2.267) and Germany R31.51 (US$1.834).
Petrol prices in Africa
In Africa, the Central African Republic topped the ranks ahead of South Africa at R39.67 (US$2.309) followed by Zimbabwe R34 (US$1.979) and Malawi R33.40 (US$1.944). Other notable African countries include Uganda R28.57 (US$1.663), Senegal R23.54 (US$1.370), and Nigeria R7.17 (US$0.417).
What next for South Africa?
In a bid to de-regulate the fuel sector in South Africa, Business Tech reported that the DA announced plans to introduce a new private members’ bill to Parliament with a focus on amending the existing Petroleum Products Act.
"The DA will also ensure that the Competition Commission will keep a close eye on the market and ensure that price gouging does not occur, particularly in rural and small towns where competition may not be fully developed.
"This will ensure that in regions where competition may be low, fuel prices may not exceed an unreasonably high level,” said the party’s Kevin Mileham.
Can South African slash prices back down to below R20 per litre?
Mileham, the DA’s spokesperson for Mineral Resources and Energy, explained three proposals to reduce by about R9 a litre, taking the fuel price to R17.50.
The first would be to scrap the general fuel levy of R3.93 per litre, which is just a tax on the fuel price. The second is to amend the Road Accident Fund levy of R2.18 per litre and lastly, the introduction of a Fuel Deregulation Bill to create competition in the fuel sector.
IOL