South African Finance Minister Tito Mboweni has announced an increase in fuel taxes as part of his 2021 budget speech.
Mboweni said the following increases will take place on 7 April 2021:
- General Fuel Levy – 15c/litre increase
- RAF Levy – 11c/litre increase
He added that carbon taxes will also be increased from 7 April 2021.
The carbon tax rate increased by 5.2%, from R127 to R134 per tonne of carbon dioxide equivalent, from 1 January 2021.
The levy for 2021 will increase by 1c to 8c/litre for petrol and 9c/litre for diesel from 7 April, stated Mboweni’s budget plans.
“To support South Africa’s climate change commitments under the Paris Agreement, the Department of Environment, Forestry and Fisheries is considering enhancing the carbon budgeting system to regulate greenhouse gas emissions by imposing caps on companies for a five-year period,” stated the budget plans.
“Once legislation on carbon budgets is enacted, government will phase out the carbon budget allowance of 5% provided under the carbon tax.”
How much more you will pay
The table below details a breakdown of the increased fuel taxes.
It shows that a motorist buying 93 petrol, for example, will pay R6.15 in taxes per litre.
This is 40% of the pump price of R15.50 per litre.
No more increases – AA
Mboweni’s budget speech follows a recent plea from the Automobile Association (AA) of South Africa not to increase fuel levies.
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”.
“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.”