- South Africans have been upset by the thought that petrol in Botswana costs less than SA, even though they import their fuel from our country
- Botswana's fuel currently costs R10.34 a litre, as opposed to R14.23 in South Africa
- While this difference may make it seem as though Botswana is paying a cheaper rate for fuel, an analysis of South Africa's fuel price shows otherwise
South Africans are up in arms about the 36% price difference between fuel at home, versus the apparently cheaper fuel in Botswana.
But the reality is that the fuel price is not as simple as just paying for fuel, there are taxes attached to the fuel price.
In South Africa, the fuel price comprises four main elements:
- The general fuel levy; which is currently at R3.37 a litre.
- The Road Accident Fund (RAF) levy; currently at R1.93 a litre.
- The basic fuel price (freight and insurance costs, cargo dues, storage and financing); stands at R5.81 a litre.
- Wholesale and retail margins, and distribution and transport costs, which are at R3.12 inland, and R2.78 at the coast.
Briefly.co.za learned however, that currently, Botswana's fuel levies only amount to 39 cents a litre of fuel.
The country's fuel price is currently at R10.34 a litre, which means R9.95 is the amount of the basic fuel price in Botswana.
The country also has a Motor Vehicle Accident Fund (MVAF), which is equivalent to South Africa's RAF, however it is unclear how much of the cost of fuel in Botswana is paid to the MVAF.
Taking all this into account, even if Botswana's MVAF tax on fuel was estimated as equivalent to South Africa's at R1.93 a litre, and additional costs were added at R3.12; South Africa's basic fuel price is only 15% cheaper, at R5.81 compared to R4.90 in Botswana.
The difference, then, is not that Botswana's fuel is 36% cheaper, but rather that South Africa's taxes are 88% higher than Botswana's, and perhaps that is something that government should answer for.
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