South Africa’s diesel prices vs the world — from R6 per bakkie tank

South Africa’s diesel price is slightly more expensive than the average price of the fuel across 168 countries, a comparison by GlobalPetrolPrices.com shows.

When it comes to South Africa’s monthly fuel price adjustments, there tends to be a focus on petrol price changes.

That makes sense given that many general commuters in the country have petrol-powered vehicles and the petrol price is regulated, meaning the changes will reflect directly on their monthly budget.

However, the vast majority of trucks and other large goods transport vehicles in South Africa run on diesel.

With South Africa’s electric train infrastructure in shambles, the price of diesel can have a significant impact on consumer price inflation.

In addition, some of the best-selling passenger cars are diesel-powered — including Ford’s Ranger bakkie and Everest SUV and Toyota’s Hilux bakkie and Fortuner SUV.

Therefore, the price of diesel still has a significant impact on South Africans’ monthly budgets.

GlobalPetrolPrices explained that most rich countries tend to have higher fuel prices while poorer countries have lower prices.

One exception is the US, which is economically advanced but also has low fuel prices due to significant local oil reserves.

Aside from local production capacity, diesel prices vary across countries due to various taxes and subsidies.

“All countries have access to the same petroleum prices of international markets but then decide to impose different taxes,” GlobalPetrolPrices explained.

The country with the cheapest diesel price in the world is Venezuela, where a litre of the fuel is priced at just R0.08.

Filling up a typical 45-litre tank in the South American country will cost R3.42, while a full 80-litre tank of a Toyota Hilux or Fortuner would cost about R6.08.

Venezuela has significant oil reserves and production capacity, including the largest refinery complex in the Western Hemisphere.

However, while this might mean low prices for locals, economists regard the country as a failed “petrostate”.

Over 95% of Venezuela’s exports are oil, making the country’s growth extremely dependent on changes in the oil price.

Between 2014 and 2021, Venezuela’s gross domestic product shrank by 75% due to declining oil prices and sanctions.

A crude oil refinery complex near Punto Fijo in Venezuela

On the other side of the comparison, the most expensive country for diesel is Hong Kong, where a litre will set you back R56.98.

At that price it will cost R4,558.40 to fill up a Fortuner or Hilux’s tank.

However, Hong Kong has a highly advanced public transport network and is very small compared to South Africa, so the distances that goods need to be transported are minimal.

In South Africa, the average diesel price is currently R23.13, about 2% higher than the average of R22.68. It ranks as the 94th most affordable or 75th most expensive out of the analysed countries.

While the country’s diesel price is higher than that of many of its neighbours and other states in Africa, it is substantially lower than that of affluent countries without oil production, including European countries like France, Germany, and the Netherlands, as well as the United Kingdom.

However, all these countries have substantially better public and goods transport infrastructure, with consumers and businesses less reliant on diesel.

They have also seen a bigger shift towards fully electric and hybrid vehicles for last-mile deliveries.

Four South African neighbours have cheaper prices

Notably, diesel prices were cheaper in four of South Africa’s neighbours, three of which rely heavily on South Africa for fuel imports — Botswana, Eswatini, and Lesotho.

The same was true for petrol prices, which are cheaper in all of South Africa’s neighbours except Mozambique and Zimbabwe.

While their fuel transport costs may be higher than South Africa’s, the three SA-dependent countries with lower prices impose significantly lower taxes on petrol and diesel.

Where fuel taxes make up over R6 per litre of petrol or diesel in South Africa, they only contribute about R1.20, R3.85, and R1,60 in Botswana, Eswatini, and Lesotho, respectively.

The table below compares South Africa’s average diesel price with 30 other countries in July 2024.