The General Fuel Levy and Road Accident Fund (RA) will not be increased this year.
During his budget speech on Wednesday, Finance Minister Enoch Godongwana noted that the government is mindful of the high cost of living and how fuel prices affect food and transport expenses.
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‘In this regard, we are proposing no increases to the general fuel levy for 2024/25. This will result in tax relief of around R4 billion. This is money back in the pockets of consumers.’
This decision maintains the General Fuel Levy at 18% of the retail price, and the RAF levy will remain at around 10%.
This means that the General Fuel Levy will remain R3.95 for one litre of inland 95 petrol, and the RAF levy will remain R2.18.
The two combined add R6.13 to the price of petrol, which is currently R23.24 for one litre of inland 95.
However, BusinessTech reports that the carbon fuel levy (an add-on to the general fuel levy) will increase from 10 cents per litre to 11 cents per litre of petrol and from 11 cents per litre to 14 cents per litre for diesel.
‘A discussion paper outlining proposals for the second phase of the carbon tax will be published for public comment later in the year,’ says Godongwana.
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Picture: Lemon Pepper Pictures / Unsplash
