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From 3rd April, You will be taxed R277 every time you fill up with petrol

Consumers will have to brace up for the taxes they will have to pay from hence Brace up:  every time they fill up with petrol from midnight

South African motorists will be paying significantly more to fill up their cars from Wednesday (3 April).

The Department of Energy published the latest fuel price adjustments on Sunday, showing increases across the board as a result of rising global oil prices, a weaker rand and the introduction of new fuel taxes.

The rand depreciated, on average, against the US dollar (from R13.80 to R14.36) during the period under review.

This increased the contribution on the Basic Fuel Price of petrol, diesel and illuminating paraffin by between 28.00c/l and 30.00c/l, the department said.

The average Brent Crude oil price also increased from $64.04 to $66.01 per barrel during the period under review.

This led to higher prices of all the petroleum products which increased the contribution on the Basic Fuel Price of petrol, diesel and illuminating paraffin by about 78.00c/l, 26.66c/l and 25.76c/l respectively.

This combined with new fuel taxes means that the price of 95 unleaded goes up by R1.26 per litre at the coast, while the price of 93 unleaded goes up by R1.29 per litre. Diesel 0.05% increases by 76 cents per litre at the coast.

Fuel March Official April Official
95 Petrol R14.82 R16.13
93 Petrol R14.61 R15.95
0.05% Diesel (wholesale) R14.06 R14.88

 

Taxes

South Africa’s fuel taxes remain a major point of contention,  with many critics arguing that these taxes should not be so high.

Fuel and electricity prices go up this week and are strongly influenced by years of poor administration and mismanagement by Government, said civil society group Outa.

It added that the extra revenue from the general fuel levy alone compared to a decade ago would pay for another Gauteng Freeway Improvement Project, but motorists are not feeling the benefits of the ever-increasing taxes.”

“Outa is of the opinion that the general fuel levy, which is now at R3.52 per litre on petrol, is excessive. This levy generated R75 billion in revenue in 2018/19 and accounts for 23% of the petrol price, said Ronald Chauke, Outa’s portfolio manager for Energy.

“Outa believes that Treasury has pushed the general fuel levy too far over the past decade, from R1.21/l at the start of 2008 to this month’s R3.52/l.

“In 2008/9, the general fuel levy raised R25 billion, an annual collection which has now trebled to R75 billion. That extra R50 billion is two-and-a-half times the R20 billion price tag for the GFIP, which South Africa is now struggling to pay for.”

Cost of filling up

Wednesday will see the Fuel and Road Accident Fund Levies increased by 15 cents a litre and 5 cents, respectively.

Consumers currently (pre-April 2019) pay R5.34 towards indirect taxes on every litre of petrol bought, and R5.19 on every litre of diesel.

This comprises R3.37 (petrol) and R3.22 (diesel) for the general fuel levy, R1.93 for the RAF levy (for petrol and diesel) and 4 cents for customs and excise taxes (for both petrol and diesel).

An additional 20 cents will see the total amount paid towards indirect taxes rise to R5.54 for every litre of petrol bought, and R5.39 on every litre of diesel.

On a vehicle with a 50-litre tank, this means that drivers will be paying between R269.50 (diesel) and R277 (petrol) in tax, every time they fill up (with a full tank).

Source: BUSINESSTECH

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