As South Africans brace themselves for the Budget Speech on 23 February, the Automobile Association has urged the Minister of Finance to avoid increasing the fuel levies and called for a review of the fuel pricing structure.
AS SOUTH Africans brace themselves for the Budget Speech on 23 February, the Automobile Association has urged the Minister of Finance to avoid increasing the fuel levies and called for a review of the fuel pricing structure.
The price of petrol has risen by R4.45 in the last year alone, with a litre of 95 unleaded petrol currently costing R19.42 at the coast, reports IOL Motoring.
Although constantly rising international oil prices are mostly to blame for the recent increases, the current fuel taxes – which amount to R6.11 per litre of fuel – are aggravating the situation.
“We know all too well of the economic challenges facing the country, and of the importance of the revenue raised through the two main levies,” the AA said.
“However, increasing the levels of the General Fuel and Road Accident levies will be counterproductive as this will impact mostly on the poorest of the poor.”
The General Fuel Levy (GFL) stands at R3.93 per litre and the Road Accident Fund (RAF) levy at R2.18 per litre.
According to The Organisation Undoing Tax Abuse (OUTA), the fuel levy increased by 116% between 2011 and 2021, while the RAF contribution increased by 173%.
Adding insult to injury is that many neighbouring countries that buy fuel from South Africa don’t have such taxes, making their fuel cheaper.
The AA said: “One immediate solution for us, for instance, is to review the funding of the poorly managed Road Accident Fund (RAF).”
The association has set up an online petition, urging the Minister to implement a fuel price review.
Daily Voice
