Why petrol costs so much in South Africa

Petrol prices in South Africa have surged more than tenfold over the past three decades, rising from R1.90 per litre in 1995 to R21.48 in 2025, far outpacing inflation and deepening the cost-of-living strain on millions of households. The 1,093% increase, driven by a weak rand, soaring global oil prices, and a decline in local refining capacity, has made petrol one of the country’s most expensive everyday essentials.

In October 1995, a litre of 93-octane unleaded petrol cost R1.90 inland; by October 2025 it reached R21.48. That dramatic increase far outpaces the roughly 417% inflation recorded in South Africa over the same period.

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Three principal factors drive the cost, according to analysts; namely international oil prices, the weak rand, and collapsing local refining capacity.

In September 1995, a barrel of Brent crude cost US$16.70; by September 2025 it had climbed to US$67.95, a rise of about 307%. At the same time, the rand’s value slid from roughly R3.66 to the dollar in 1995 to about R17.43 in 2025, a depreciation of around 376%.

Local refining has also faltered. TopAuto reported that in 1994 South Africa’s fuel refining capacity was about 563,000 barrels per day; by 2025 running capacity had dropped to about 250,000 barrels per day, less than half of its 1995 level.

Faced with rising demand, lower domestic output, and import reliance, South Africa now imports about 60% of its fuel consumption in refined form, up from 22% in 2019.

The domestic price structure confirms the import-parity rule, pump prices are tied to global petroleum product prices and the exchange rate, as detailed by the Department of Mineral Resources and Energy (DMRE).

A basic fuel price component (BFP) rose from R0.54 per litre in 1995 to R9.87 in 2025, an increase of 1,728%. Meanwhile transport, storage, tax and margins rose by 821%.