Good news for petrol and diesel prices

3 years ago 1

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Finance minister Enoch Godongwana has announced that South Africa’s general fuel levy and Road Accident Fund levy will not be increased this year.

The current general fuel levy is 18% of the retail fuel price, while the Road Accident Fund levy is around 10%.

National Treasury will also extend a tax rebate on diesel for food manufacturers.

“To ease the impact of the electricity crisis on food prices, the refund on the Road Accident Fund levy for diesel used in the manufacturing process, such as for generators, will be extended to manufacturers of foodstuffs,” Godongwana said.

“This takes effect from 1 April 2023 for two years [until 31 March 2025].”

South Africans currently pay R21.38 per litre of 93-octane petrol inland and R20.73 at the coast.

The wholesale price for 50 parts-per-million (ppm) diesel is R21.41 inland and R20.77 at the coast.

Fuel price increases are still likely for March

In its mid-month fuel price analysis, BusinessTech is currently forecasting a R1.26 per litre price increase on 93-octane petrol and R1.20 per litre on 95-octane petrol.

Diesel is currently expected to increase by 37 cents and 38 cents per litre for 500 ppm and 50 ppm, respectively.

Illuminating paraffin is set for a 41 cents per litre increase in March.

South Africa has seen substantial price hikes for petrol and diesel following Russia’s invasion of Ukraine, which caused a sharp rise in the price of Brent crude oil.

Since then, the US dollar has also strengthened significantly against other currencies, including the rand.

South African motorists started paying over R20 per litre of petrol in February 2022, and the price has remained above that level.