The 2018 Fuel Levy and Road Accident Fund:
For most road users, the most alarming changes in the recent National Budget, announced 21 February 2018, included the increase in the General Fuel levy and Road Accident Fund levy, of which South African Finance Minister Malusi Gigaba announced an increase of more than 50 cents per litre from 04 April 2018, which amounts to a total increase of 11% on the current levies, from R4, 78 to R5, 30.
The minister announced the General Fuel Levy will increase by 22 cents from R3.15 to R3.37 (7% increase), and the Road Accident Fund levy will increase by 30 cents from R1.63 to R1.93 (18% increase).
As it stands a litre of unleaded 93 octane fuel inland costs R13.90. This will increase to R14.42. A litre of unleaded 93 octane at the coast costs R13.49 which will increase to R14.01.
“The main tax proposals for the 2018 Budget are 52 cents per litre increase in the levies on fuel, made up of 22 cents per litre for the general fuel levy and 30 cents per litre increase in the Road Accident Fund Levy,” said Finance Minister Malusi Gigaba.
South Africans have become more than accustomed to increases in fuel prices and levies, but the recent shifts in sentiment indicate that these most recent changes in governmental taxation will have a dramatic impact on the working classes monthly budget and expenses; increasing the cost of living and travel.
The Automotive Association (AA) spoke out about the recent 2018 Budget, mentioning that the increases are based on the February fuel prices which may increase or decrease before the implementation of the levy price increase in April.
“This 52 cents a litre hike in the fuel levies more than wipes out the 30 cents gain realised in the fuel price in January, and the AA’s predicted decrease of 28 cents going into March; these decreases were gained mainly through the strengthening of the rand as a result of the change in leadership of the ruling party.” The AA said.
We hope that this brief update will assist you in planning your budget for the new month and give you some time adjust and save fuel before the launch of the new prices this April.
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