Fuel Levies Will Stay as is For Now – Finance Minister

Despite fuel levies expected to be increased at this year’s budget speech, it seems the finance minister has listened to the cries of local organisations to freeze it amidst a prohibitive cost of living.

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During Finance Minister Enoch Godongwana’s budget speech on Wednesday, it was noted that the government is mindful of the high cost of living and how fuel prices affect food and transport expenses.

‘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 comes after many economists had expected Godongwana to increase the general fuel levy and other related taxes for this financial year, which would have skyrocketed the cost of fuels been further amidst the current geo-political distrubances in the production and distribution of fuel.

Related: Massive Fuel Price Hike Expected for March 2024

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. This constitutes over a quarter of money spent on fuel being contributed towards government taxes in South Africa, while many neighbouring countries which supply their fuel through South African freight passages pay lower taxes on theirs.

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The post Fuel Levies Will Stay as is For Now – Finance Minister appeared first on CAR Magazine.


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