• News
    • Tech
    • Lifestyle
    • Business
    • Opinion
    • Premium
  • Reviews
  • Events
    • Nigeria
    • South Africa
  • Tools
    • Price Guide
    • Find your idea car
    • Car valuation
    • Sell your car
    • Car insurance quote
    • Locate a dealer
    • Deals
  • For Sale
    • New Cars for sale
    • Cheap Cars for sale
    • Bikes for sale
    • Trucks for sale
    • Boats for sale
    • Jets for sale in Africa
    • Cars under 5m
    • EV in Nigeria
    • EV in South Africa
Saturday, September 6, 2025
  • Login
Auto Journal Africa
  • News
    • Tech
    • Lifestyle
    • Business
    • Opinion
    • Premium
  • Reviews
  • Events
    • Nigeria
    • South Africa
  • Tools
    • Price Guide
    • Find your idea car
    • Car valuation
    • Sell your car
    • Car insurance quote
    • Locate a dealer
    • Deals
  • For Sale
    • New Cars for sale
    • Cheap Cars for sale
    • Bikes for sale
    • Trucks for sale
    • Boats for sale
    • Jets for sale in Africa
    • Cars under 5m
    • EV in Nigeria
    • EV in South Africa
Ask Autojorunal AI
No Result
View All Result
  • News
    • Tech
    • Lifestyle
    • Business
    • Opinion
    • Premium
  • Reviews
  • Events
    • Nigeria
    • South Africa
  • Tools
    • Price Guide
    • Find your idea car
    • Car valuation
    • Sell your car
    • Car insurance quote
    • Locate a dealer
    • Deals
  • For Sale
    • New Cars for sale
    • Cheap Cars for sale
    • Bikes for sale
    • Trucks for sale
    • Boats for sale
    • Jets for sale in Africa
    • Cars under 5m
    • EV in Nigeria
    • EV in South Africa
No Result
View All Result
Morning News
No Result
View All Result
Home News

South Africa explores strategies to tackle soaring fuel prices

David Ijaseun by David Ijaseun
September 1, 2023
in News
0
soaring fuel prices in South Africa
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

In a recent economic analysis, economists Zaakirah Ismail and Christopher Wood from the South African Reserve Bank (SARB) have proposed four key strategies for the South African government to combat the persistently rising fuel prices. These proposals aim to alleviate the burden on consumers and address the impact of fuel costs on the nation’s inflation rate.

The first recommendation suggests a thorough review of the methodology used to calculate retail margins. Instead of regulating the petrol price, the economists propose establishing a “maximum” price. This change would empower retailers to set prices below the maximum, introducing a competitive element into pricing decisions.

READ ALSO

Cleaner transport: NEDC launches 1,000 Electric vehicles and health plan in Adamawa

ArcelorMittal to axe 4,000 jobs, nearly half its South African workforce

Another area of focus is the determination of inland transport costs. By scrutinizing and potentially revising this aspect of fuel pricing, the government could mitigate further cost increases.

The economists also call for an evaluation of the Road Accident Fund (RAF) and its continued viability. Comparing this approach to the more common practice of mandating third-party insurance for all drivers, they highlight the rapidly escalating RAF levies and suggest exploring alternative options for managing the financial consequences of road accidents.

Lastly, the economists recommend updating or eliminating outdated components of the basic fuel price calculation to ensure that fuel prices accurately reflect the current market conditions.

In addition to these proposals, the economists suggest increasing the frequency of fuel price adjustments. They argue that the mechanical nature of these calculations allows for more frequent updates, similar to the practices observed in global markets where prices change every two weeks. This change would enhance the responsiveness of fuel prices and reduce the need for short-term adjustments through the slate levy.

Fuel prices, with taxes accounting for 27-31 percent of the total cost, significantly contribute to inflation in South Africa, according to TopAuto, a South African news platfrom. The nation’s heavy reliance on road transportation, with over 80 percent of goods transported by road, means that increases in fuel prices ripple through the economy, affecting the cost of essential goods like food and clothing.

The economists also delve into the factors behind rising retail margins, identifying wages and earnings for owners as key contributors. Despite stagnant sales volumes, the number of retail employees has increased, driving up labor costs. To address this, they suggest reviewing the portion of the margin received by owners and adopting a more transparent approach to calculating retail margins.

Furthermore, the economists propose revisiting the unique structure of the Road Accident Fund (RAF) in South Africa, noting that few other countries employ a similar system. They argue that mandating third-party insurance for all drivers could offer a more cost-effective alternative to the RAF’s rising levies.

The General Fuel Levy (GFL) emerges as a significant driver of petrol price inflation over the past decade. While intended for road maintenance, it has not been effectively utilized for this purpose, contributing to a backlog of road repairs estimated to cost billions. The economists acknowledge the importance of the GFL in addressing fiscal deficits and infrastructure needs but call for a detailed review to ensure it is fair and effective.

Lastly, transport costs, although a smaller component of fuel costs, have been rising faster than market rates. The lack of transparency in how these costs are determined raises questions, prompting a call for greater scrutiny and review.

Read more on: Speed and splurge: South Africans spent $11.7 million on Ferraris in 2023

Related Posts

Cleaner transport: NEDC launches 1,000 Electric vehicles and health plan in Adamawa
News

Cleaner transport: NEDC launches 1,000 Electric vehicles and health plan in Adamawa

September 4, 2025
ArcelorMittal South Africa steel industry
News

ArcelorMittal to axe 4,000 jobs, nearly half its South African workforce

September 3, 2025
car sales in Egypt 2025
Africa

Egypt’s car sales soar 83% in 2025 as cheaper prices, reforms fuel demand

September 3, 2025
E20 Fuel in Indai
Cars/SUVs

India’s ethanol fuel drive faces backlash as motorists fear car damage

August 29, 2025
electric vehicle training
Africa

Nigeria opens new auto training center in Lagos to drive electric vehicle growth

August 27, 2025
Car loans in South Africa
News

Short relief, long pain: Why car loans cost 36% more in South Africa

August 26, 2025
Next Post
car crash | KGAN

VIN-lookup: How to avoid buying a crashed, repaired car in South Africa

POPULAR NEWS

Inferno at Toyota 1000 Desert Race consumes 49 cars

Inferno at Toyota 1000 Desert Race consumes 49 cars

July 3, 2023
Mobius Motors

Mobius Motors: Rising taxes, competition ends Kenyan SUV maker’s journey

August 7, 2024
Autojournal car race

Get ready for the biggest RACE show this December in Nigeria

August 12, 2024
From style to sustainability: How Geely Auto is shaping the future of luxury vehicles

From style to sustainability: How Geely Auto is shaping the future of luxury vehicles

October 25, 2024
Oyo State Governor gifts Saheed Osupa Toyota Prado SUV worth ₦70M 

Oyo State Governor gifts Saheed Osupa Toyota Prado SUV worth ₦70M 

August 22, 2023

EDITOR'S PICK

WeRide

China’s WeRide targets $5bn U.S. IPO amid regulatory challenges

August 12, 2024
Roman Starovoit, Russia's Former Minister of Transport

Minister Starovoit’s death exposes intense pressure inside Russia’s transport sector

July 9, 2025
Carjack in South Africa

Stolen dreams: Over 60 cars hijacked daily across South Africa in Q1 2024/2025

September 1, 2024
South Africa rail network

South Africa opens rail network to private operators in a bid to revive economy

December 27, 2024

About

Auto Journal Africa is the leading online and print magazine for automobiles in Africa.

Follow us

Recent Posts

  • Uber, Bolt lose rider trust in South Africa over safety and service issues
  • Giorgio Armani, designer, dreamer, and yachtsman who changed modern style, Dies at 91
  • Cleaner transport: NEDC launches 1,000 Electric vehicles and health plan in Adamawa
  • ArcelorMittal to axe 4,000 jobs, nearly half its South African workforce

Links

  • Privacy Policy
  • About Us
  • Contact Us
  • News
  • Reviews
  • Events
  • Tools
  • For Sale

© 2023 Auto Journal

No Result
View All Result
  • News
    • Tech
    • Lifestyle
    • Business
    • Opinion
    • Premium
  • Reviews
  • Events
    • Nigeria
    • South Africa
  • Tools
    • Price Guide
    • Find your idea car
    • Car valuation
    • Sell your car
    • Car insurance quote
    • Locate a dealer
    • Deals
  • For Sale
    • New Cars for sale
    • Cheap Cars for sale
    • Bikes for sale
    • Trucks for sale
    • Boats for sale
    • Jets for sale in Africa
    • Cars under 5m
    • EV in Nigeria
    • EV in South Africa

© 2023 Auto Journal

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In