Home South African #Budget2021 More pain at the pumps as fuel levies rise

#Budget2021 More pain at the pumps as fuel levies rise

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During his 2020 Budget Speech held in parliament, Finance Minister Tito Mboweni announced that fuel levies would increase by 27 cents in total.

Treasury has just announced an increase in fuel levies, which will be effective from early April. File image. Picture: Ian Landsberg/African News Agency (ANA).

JOHANNESBURG – 2021 is turning out to be a bleak year for motorists and commuters, with rising international oil prices translating into monthly increases at the pumps, and to add insult to injury, Treasury has just announced an increase in fuel levies, which will be effective from early April.

During his 2020 Budget Speech held in parliament, Finance Minister Tito Mboweni announced that fuel levies would increase by 27 cents in total. This comprises a 15 cents per litre rise in the general fuel levy, while the Road Accident Fund levy is set to increase by 11 cents and the Carbon Fuel levy by 1 cent.

This will see the General Fuel Levy rise from the current R3.77 to R3.92, while the Road Accident Fund levy will increase from R2.07 to R2.18.

The tax increases come in addition to the expected fuel price increases at the end of February, when petrol is looking set to increase by more than 60 cents a litre and diesel by over 50c.

95 Unleaded Petrol currently retails at R14.97 at the coast and R15.67 inland.

International oil prices have been pushed up by a general increase in positive sentiment due to the roll-out of Covid-19 vaccines and an uptick in global economic activity.

South Africans feeling the ‘bite’

The Automobile Association says that any adjustment to the fuel levies would add another layer of financial demand on consumers who are already under heavy personal financial strain.

“South Africans are not only feeling the pinch right now, but they are feeling the bite, and an increase to the levies will add to their woes.

“In light of the financial devastation on businesses and individuals caused by Covid-19 we believe levy increases will be counter-productive and harmful,” the association added.

IOL Motoring

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