Minister’s R14 per litre of petrol ‘promise’ in South Africa

It has been nearly two years since the Mineral and Petroleum Resources Minister Gwede Mantashe said diesel and petrol should cost R14 per litre in South Africa. 

Despite Mantashe’s statement and reports of high-level discussions within government to review the pricing formulae for various fuels in South Africa, petrol and diesel prices remain well above R14 per litre. 

As of January 2026, the inland price of 93 octane petrol remains above R20 per litre, with diesel slightly lower at R18.52 per litre. 

While Mantashe, other ministers, and President Cyril Ramaphosa have said reviews are underway to ease cost-of-living pressures in South Africa, there has been little to show for it. 

With regard to petrol, there has been little discussion of the real reason for elevated prices, which is the rapid rise in various taxes and levies as part of the price of fuel at the pumps. 

Were these taxes removed, the price of petrol could fall to around R14 per litre, and diesel would drop to below R13 per litre. 

These rising taxes have been coupled with a weakening rand, making it more expensive to import oil and refined fuel into South Africa. 

Mantashe did not mention either of these factors when he told delegates at the 2024 Africa Oil Week Conference that petrol and diesel should cost R14 per litre. 

“The price of fuel is part of the cost of living. When the fuel price increases, the cost of living in South Africa also rises. This is not good for society,” Mantashe said.

“The state must intervene to bring energy prices down in the interest of the South African community.” 

To this end, Mantashe said his department was in high-level discussions with the National Treasury to find ways to reduce fuel prices. 

This was part of a review of administered prices, announced by Ramaphosa during the 2024 State of the Nation Address. 

The review would include fuel and electricity prices, with the specific formulae for calculating these prices being analysed to find ways to bring relief to South Africans. 

Very little in the way of relief has come out of these reviews so far, with electricity prices rising and fuel prices remaining elevated despite global factors working in South Africa’s favour. 

Real reasons petrol costs so much in South Africa

South Africa’s petrol price is made up of two main elements – the Basic Fuel Price and various administered components that include taxes levied on the sale of fuel. 

The Basic Fuel Price is calculated using international oil prices and the rand-dollar exchange rate. This represents the cost of purchasing oil and importing it into South Africa. 

Over the past five years, the Basic Fuel Price has increased slightly due to the combination of a rising oil price and a weakening rand. 

However, the full rise of petrol and diesel prices over the past five years cannot be explained by the Basic Fuel Price alone. Oil prices have only risen by 13.6% over the past five years, while the rand has weakened by 9.75% against the US dollar. 

These factors have been compounded by rising taxes levied on fuel, which have significantly outstripped inflation over the past decade. 

More crucially, since Mantashe said there were discussions with the National Treasury about reducing the price of fuel, the General Fuel Levy (GFL) has actually been increased. 

National Treasury data shows that, after the latest increase in 2025, South Africans pay R6.37 in tax for every litre of 93 octane petrol and R6.24 per litre of diesel. This means that nearly a third of the price of fuel in South Africa is made up by taxes.

These taxes are incredibly lucrative for the government as they are easy to administer and target a wide tax base, unlike personal or corporate income tax. 

As a result, these taxes have been seen as a means to plug fiscal holes over the past decade, rather than being focused on their initial intention. 

The GFL, for example, is intended to fund the maintenance and enhancement of South Africa’s road network. 

However, now that the tax brings in close to R100 billion for the state, it has become a vital revenue stream alongside personal and corporate income taxes and VAT. 

This also means that it is highly unlikely that the state will reduce this tax to make fuel cheaper in South Africa, as it will significantly impact its revenue. 

Administered components of the fuel price, which include the GFL, have risen strongly over the past decade. 

Of all these elements, the wholesale margin is the only one to have increased at a rate below inflation since 2013, with the rest significantly outpacing CPI inflation. 

For example, the RAF levy has risen by 41.56% in real terms over the past decade, with the retail margin and transport cost rising by 40% and 49%, respectively. 

The GFL, more commonly known as the fuel tax, has risen by 57.25% over the past decade.

The table below provides a breakdown of all the tax collected per litre of petrol, using the latest fuel prices as of January 2026.

Taxes on fuel	93 Petrol	Diesel 0.05%
General Fuel Levy	R4.01	R3.85
RAF Levy	R2.18	R2.18
Customs and excise levy	R0.04	R0.04
Carbon tax	R0.14	R0.07
Total tax	R6.37	R6.24
Pump price (inland)	R20.64	R18.41
Tax as a % of pump price	30.8%	33.9%