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Tax in April turn fuel price relief into hefty hike

Johannesburg – Were it not for the 52 cent increase in fuel taxes that are due to come into effect at the beginning of April, South African motorists would have been looking forward to a slight decrease in the price of fuel from next month.

However, now motorists are likely to fork out over 40 cents more for a litre of petrol from the first Wednesday of April.

According to the Automobile Association, the average fuel price reduction indicator for the month so far stands at around 12 cents for petrol and 18c for diesel, thanks to a relatively stable rand and slightly lower international oil prices.

Back in February former Finance Minister Malusi Gigaba announced during the annual Budget Speech that the General Fuel Levy would increase by 22 cents a litre from April (from R3.15 to R3.37), while the Road Accident Fund contribution would rise by 30 cents, from R1.63 to R1.93. These levies account for up to 39 percent of the price you pay for a litre of petrol at the pumps.

So what are we likely to pay for petrol from April?

A litre of 93 Unleaded is likely to increase from R13.54 to R13.94 (factoring in the slight decrease in oil prices) while petrol will increase from R13.13 to R13.53 at the coast, according to the AA’s prediction.

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