The Automobile Association (AA) of South Africa is urging the Minister of Finance, Tito Mboweni, not to increase fuel levies when he delivers his budget speech to parliament on 24 February.
Any potential increases announced by the minister would then come into effect in April.
“We also again acknowledge that the minister is faced with a difficult task as he outlines priorities for the next year,” said the AA.
“South Africa’s fragile economy, which has been dealt a further massive blow by the impact of COVID-19, is in a dire state – with many millions of South Africans in worse financial positions than they were this time last year.”
“Minister Mboweni will have to carefully balance the needs of the government with the ability of citizens to fund those needs.”
It said that an increase – even one in line with inflation – may not seem onerous, but combined with increases to other goods and services “will add up”.
Two major taxes, the General Fuel levy and Road Accident levy, are included in South Africa’s fuel prices.
The General Fuel levy currently stands at R3.77 per litre for petrol, and R3.63 for diesel.
The Road Accident levy stands at R2.07 for all fuel.
This means that the following amount of money is paid to the government each time you fill up:
- R5.84 per litre of petrol
- R5.70 per litre of diesel
Moreover, neighbouring countries who buy fuel from South Africa do not add these taxes to their fuel pricing – making it cheaper than in the country which supplies them.
“It is worth repeating that any increases to the fuel levies go hand-in-hand with increases to public transport fares – including taxis.”
“Increases to the fuel levies also contribute to increased input costs of manufacturers, suppliers and the agricultural sector.”
In conclusion, the AA said the minister should keep in mind that many citizens rely on affordable and reliable transport to find and maintain jobs in the rough economic climate.