THE Automobile Association (AA) has published a fuel price breakdown for the third year.
This breakdown gives a snapshot of how the cost of every litre of petrol inland, and at the coast, is determined.
These figures are based on 93 unleaded octane fuel (inland) and 95 octane fuel (coastal).
According to the AA, the purpose of the breakdown is aimed at educating the public about why a litre of fuel costs what is does, and where the money spent is being allocated.
At the beginning of April motorists across the country paid between 69 cents and 72 cents more for a litre of fuel at the pumps.
This massive increase was due to a number factors, strengthening international petroleum prices, and the addition of 52 cents to the fuel levies.
These fuel levies are mainly in the form of two indirect taxes - the General Fuel Levy, and the Road Accident Fund (RAF) Levy.
The increases to these levies was announced by former Finance Minister Malusi Gigaba in his Budget Speech in February, but only came into effect at the beginning of the month.
The fuel price is comprised of four main elements. These are
the
• The General Fuel Levy,
• The RAF Levy,
• The Basic Fuel Price (freight and insurance costs, cargo dues, storage and financing),
• Wholesale and retail margins, and distribution and transport costs.
