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How much you’ll be paying for fuel after tax hikes

fuel price

In 2019, you’ll now have to fork out more for your alcohol, ciggies and petrol after Tito Mboweni’s budget speech basically declared war on “doing fun things over the weekend”. His address hiked up all areas of sin taxes, and that included the petrol prices of South Africa.

Sadly, it was all too predictable. This is the sixth time in six years that fuel tax – and the Road Accident Fund (RAF) – have been targeted by the serving finance minister. Booze and smokes were also sitting ducks, but it is the cost of keeping our cars running that will be the main concern.

Petrol prices targeted during budget

Tax on petrol has crept up by 29 cents, whereas diesel has become 30 cents more expensive. Elsewhere, a further levy of nine and ten cents has been added on for “carbon tax” – a sly addition that somewhat slipped under the radar during Wednesday’s Parliamentary gathering.

The AA isn’t exactly pumped by this latest disruption for petrol prices. They suggest that motorists will now be taxed up to 42% for every litre of fuel they buy, burdening the consumer as well as our economy:

“These increases will comprise anything between 40 – 42% of every litre of fuel bought depending on the type of fuel used and where it is purchased (either inland or coastal).”

“This represents a substantial portion of the fuel price and, in our opinion, adds to the burden especially poorer consumers carry directly through paying these taxes, and indirectly through the costs passed on to them by manufacturers and retailers who also have to pay these taxes.” AA statement

How much you pay in tax for your fuel

Petrol:

  • Fuel tax: R3.37
  • RAF levy: R1.93
  • Customs and excise taxes: Four cents
  • Carbon tax: Nine cents
  • Total: R5.43

Diesel:

  • Fuel tax: R3.22
  • RAF levy: R1.93
  • Customs and excise taxes: Four cents
  • Carbon tax: 10 cents
  • Total: R5.29

AA react to the budget

The increases to the levies will have “a deep impact” on the fuel price for the months ahead: The AA went on to say that this would place consumers on the back foot before any price adjustments for the rest of the year are even made – and their predictions seem to be well supported by the latest data from the Central Energy Fund (CEF).

The group are suggesting that the fuel tax is already braced to have a negative effect in March. A whopping 75-cents-per-litre rise is forecast for Mzansi by the end of next week, with diesel looking at a hike of 57 cents.

Current petrol prices forecast for March:

(Based on CEF estimates for March, price per litre)

Petrol 93 – set to rise from R13.86 to R14.61.

Petrol 95 – set to rise from R14.08 to R14.83.

Diesel – set to rise from R13.17 to R13.74.