Motorists are feeling the pinch following the latest fuel price hike.
Motorists will now having to fork out R15.53 for a litre of 95 octane unleaded petrol on the coast and R16.02 inland.
It's reported that the price of a litre of petrol has more than doubled over the past decade.
Read more: IFP want fuel price levies suspended
Nedbank economist Busisiwe Radebe breaks down how the fuel price is allocated.
Radebe explains that the strength of the rand has an impact on how much importing oil will cost South Africa.
The basic fuel price is about R7.62 at the pump.— Busisiwe Radebe, Nedbank economist
The feul levy is about R3.37.— Busisiwe Radebe, Nedbank economist
The Road Accident Fund (RAF) levy is R1.93.— Busisiwe Radebe, Nedbank economist
The wholesale margin is about 34c.— Busisiwe Radebe, Nedbank economist
The retail margin is about R1.87— Busisiwe Radebe, Nedbank economist
There's some pump rounding and zone differentials that get us to that total R16.02.— Busisiwe Radebe, Nedbank economist
She explains that fuel price hike affects various parts of the economy and will have knock-on effects for consumers.
Take a listen to her calculate the numbers and explain the factors:
This article first appeared on CapeTalk : [LISTEN] This is where your money goes for every R16 spent on a litre of petrol