Explainer: Why Fuel Is More Expensive Inland, And How Prices Are Calculated In South Africa

Its a fact of life that petrol and diesel are more expensive in the inland parts of South Africa, something that has been thrust into the spotlight after an additional tariff was imposed on Nelson Mandela Bay Metro for October.

Due to a damaged tanker berth at the Port Elizabeth Harbour, which may only be fixed by December at the earliest, motorists in that region were not given the full R1.14 petrol and diesel price cuts that were implemented across the country.

Consumers in Gauteng currently pay 79 cents more for petrol than their coastal counterparts, but those in the Gqeberha bay area now pay 34 cents more than the usual coastal price, while those in outlying towns such as Kariega pay a premium of 64 cents, according to the NMB Chamber of Commerce. This temporary tariff is due to transport costs as fuel is being brought in from East London.

For the purposes of fuel pricing, South Africa is divided into zones by the Department of Minerals and Energy DMRE, with inland areas attracting a transport cost of 82.8 cents per litre.

The difference between inland and coastal fuel prices is mainly due to transport costs of the fuel from depots at the coast to inland outlets, the Automobile Association says. This long-distance transportation takes place by road, rail, pipeline and/or a combination thereof.