Here’s what you’re likely to pay for FUEL after MASSIVE increase this week Image: Pixabay
Fuel: South Africans are losing almost R500 per tank to fuel taxes
South Africans could be paying way less for a tank of fuel if was not for taxes and levies which mainly go to the government.
Here’s what you’re likely to pay for FUEL after MASSIVE increase this week Image: Pixabay
If taxes and levies were t be removed, South Africans could be paying anywhere between R241 to R488 less per tank of fuel.
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Taxes and levies contribute to high fuel prices
According to BusinessTech, taxes and levies on local fuels currently account for between R6.04 and R6.18 per litre sold in the country, depending on the grade and type.
This means 26% to 31% of the cost per tank of petrol goes to the government.
Tis mainly depends on which fuel you choose, with the majority of the pump prices attributed to the basic fuel price (55%).
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In May 2023, these tariffs are currently made up of the following:
- Slate levy
- IP Trace levy (diesel)
- Pipeline levy (diesel)
- General fuel levy (GFL)
- Road accident fund levy (RAF)
- Petroleum products levy (petrol)
- Customs and excise duties
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Taxes and levy allocations
The two largest ones, which collectively account for over 99% of all taxes on fuel, are the General Fuel Levy (GFL) and Road Accident Fund (RAF) Levy.
The former being allocated to National Treasury for the government to use in any manner it sees fit. At the same time, the latter may only be utilised for road accident claims paid out by the RAF.
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Considering the country’s consistently rising fuel costs in recent years, these levies have been scrutinised by motorists and industry participants as they are significant contributors to high pump prices.
Since January 2021, on average, petrol (93 and 95) has increased by 56.7% from R14.56/l to R22.82/l in May 2023, while diesel has risen by around 58.6% from R12.81/l to R20.32/l over the same period.
