Fuel Price Increase: Cost Breakdown May & June 2022

Following last week’s press release outlining how wholesale fuel prices are determined and adjusted on St Helena, St Helena Government (SHG) have taken on-board feedback from the public requesting more detail on the breakdown of the cost of fuel on St Helena.

The below tables and graphics provide a breakdown of the cost of one litre of both diesel and petrol sold to customers at the pump for the May 2022 and June 2022 increases.

The tables show that the only increase to the cost of fuel between May 2022 and June 2022 was the landed cost of fuel from overseas suppliers, which includes the purchase price and the costs of delivery. All other costs – namely import duty, Bulk Fuel Installation (BFI) mark-up, and retail mark-up – remained constant for both diesel and petrol.  Solomon’s have taken a much lower mark-up than contractually entitled to do, to assist in reducing retail pricing to the consumer.

The four cost elements:

Landed costThis is the cost of buying the fuel and bringing it to the island
SHG fixed customs dutyThis is the tax revenue taken by SHG, used to fund essential government services
BFI wholesale mark-upThis is the mark up that pays for the running of the BFI. These costs include employee costs, on-Island fuel distribution, repairs and maintenance and management and administration
On-island retail mark-upThis is the mark up that retailers charge for operating the petrol and diesel pumps for customers
Diesel  Increase May – June
Cost ElementMay 2022 (£)June 2022 (£)£%
Landed cost1.071.34 0.2725%
SHG fixed customs duty0.390.390%
BFI wholesale mark-up0.210.210%
On-island Retail mark-up0.280.280%
Total1.952.22 0.2714%
Petrol  Increase May – June
Cost ElementMay 2022 (£)June 2022 (£)£%
Landed cost           1.04           1.14        0.1010%
SHG fixed customs duty           0.39           0.39               –0%
BFI wholesale mark-up           0.18           0.18               –0%
On- island Retail Mark-up           0.27           0.27               –0%
Total           1.88           1.98        0.105%

29 June 2022

St Helena Government Communications Hub

Telephone: 22470
Email: communications@sainthelena.gov.sh