Budget 2023
Share

Fuel levy rises to quarter of petrol cost

Port Elizabeth - The increase in the general fuel levy by 12c per litre and the additional 8c levy towards the road accident fund pushed the total tax on petrol to nearly R3.33 per litre.

The petrol price is set to rise to above R14/litre when the higher taxes and an expected hike in the basic fuel price come into effect within the next few weeks.

The additional 20c increase announced by Finance Minister Pravin Gordhan in his budget on Wednesday will be added to the fuel price in April, while a general price increase of some 36c per litre is on the cards due to the consistently high oil price and weaker rand.

This will push the petrol price to R14.31 per litre.

Tax on fuel will then amount to about 23.3%, which is actually lower than what it has been at times in the past. In fact, the fuel tax did not go up in real terms. The 12c rise in the fuel tax from the current R2.12 is equal to an increase of 5.5% - in line with inflation.

Nevertheless, it means that every time you fill your tank – say some 65 litres – you will pay around R216 towards fuel tax and related levies. That is enough for 2 pizzas and 2 beers at the pizzeria around the corner from the filling station.

It is enough to drive people to drink. But we cannot afford to drink any more either. Excise duty on a can of beer went up to just more than R1.08. Excise duty and VAT bring the total tax payable on a six pack of beer to around 26%.

Tax on a bottle Klipdrift increased by 10% to R39.60 and total tax payable now exceeds 50% of the price of a bottle (excise duty and VAT).

At least the drinkers are much better off than the smokers: after the recent increase in excise duty to R11.60 per packet of 20 cigarettes, the total sin tax and VAT on those R20 packs equals some 70% of “voluntary” tax.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.97
-0.1%
Rand - Pound
24.13
-0.1%
Rand - Euro
20.63
-0.2%
Rand - Aus dollar
12.40
+0.2%
Rand - Yen
0.13
+0.2%
Platinum
912.00
-1.2%
Palladium
1,021.38
-4.2%
Gold
2,161.57
+0.1%
Silver
25.12
+0.3%
Brent Crude
86.89
+1.8%
Top 40
66,252
0.0%
All Share
72,430
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders