Cheaper fuel: Why South Africa pays more than its neighbours

0 Cheaper fuel in South Africa’s neighbours usually raises many questions. Discover why motorists pay different prices. Image: Pixabay, AI manipulated Home » Cheaper fuel: Why South Africa pays more than its neighbours

Cheaper fuel in South Africa’s neighbours usually raises many questions. Discover why motorists pay different prices.

0 Cheaper fuel in South Africa’s neighbours usually raises many questions. Discover why motorists pay different prices. Image: Pixabay, AI manipulated Cheaper fuel across much of Southern Africa highlights the price South African motorists pay at the pumps. 

Botswana, Namibia, Lesotho, Eswatini and Mozambique have all recorded lower petrol prices than South Africa in recent comparisons. Zimbabwe, however, shows that neighbouring countries do not always offer cheaper fuel.

These differences become especially striking when countries share fuel supplies and international oil markets. 

Taxes, government subsidies, exchange rates and pricing policies help explain why motorists pay different amounts. South Africa’s substantial fuel levies, for example, contribute to the gap.

South Africa supplies fuel to several neighbouring countries, yet motorists elsewhere can pay less per litre. Botswana, for example, imported approximately 67% of its fuel from South Africa in 2023.

Namibia also imports petroleum products, but government interventions have helped cushion consumers against international price increases. Its Ministry of Industries, Mines and Energy explained how its National Energy Fund absorbs some fuel-import costs.

Lesotho and Eswatini also benefit from their own pricing arrangements and levy structures. Mozambique sets domestic fuel prices within its own regulatory framework. 

These differences mean countries can charge different prices despite facing similar international market pressures.

However, cheaper fuel does not apply across the entire region. Zimbabwe’s petrol prices exceeded South Africa’s in several recent comparisons.

International oil prices influence fuel costs throughout Southern Africa. The exchange rate also matters because importers buy petroleum products on international markets. 

Shipping, insurance, storage, transport and distribution add further costs.

South Africa’s fuel price includes substantial government levies. The General Fuel Levy raises government revenue, while the Road Accident Fund levy helps compensate road accident victims. Carbon-related charges also contribute to the final price.

In October 2026, inland motorists paid R30.25 per litre for 95 unleaded petrol. The General Fuel Levy contributed R4.10 per litre, while the Road Accident Fund levy added R2.25. Together, those two charges accounted for R6.35 per litre.

The South African Revenue Service’s 2026 budget guidance explains why South Africans can pay more than motorists across the border.

Governments can soften international price shocks through subsidies, levy reductions and delayed price adjustments. 

Botswana suspended several fuel levies earlier in 2026 before reinstating them. Its authorities did not immediately raise retail prices when those levies returned.

Namibia has also used public funds to absorb some fuel-import costs. Such interventions protect households and businesses from sudden price increases. However, governments must balance consumer relief against the cost to public finances.

South Africa temporarily suspended part of its General Fuel Levy during the latest fuel-price crisis. That measure provided relief but did not permanently remove the underlying charges.

Government policy, taxation, exchange rates and subsidies all influence the final bill. Zimbabwe’s higher prices also demonstrate that neighbouring countries face different economic pressures.

Ultimately, cheaper fuel depends on more than where a country buys its petroleum. The taxes governments impose and the costs they absorb can make a substantial difference.

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