Question

Why is the petrol price cheaper at coastal than inland

Answer 1

Answer: If a litre of fuel at the coast (95 octane) costs R13,89, then 38% is tax. The difference between inland and coastal fuel prices is mainly due to transport costs of the fuel from depots at the coat to inland outlets.

Answer 2

The petrol price is cheaper at coastal than inland due to the cost of transporting the petrol to inland. Deposits are found along the coast, so the price to transport the petrol is much cheaper than having to transport it all the way from the coast to inland. Therefore, transportation costs are the cause of petrol prices being cheaper at the coast than it is inland.