Good news about petrol and diesel taxes

Finance minister Enoch Godongwana has announced that there will be no increases to the general fuel levy or the Road Accident Fund (RAF) levy.

The government announced tax relief totalling R13 billion in 2023/24, citing high fuel prices among the reasons for the relief.

Godongwana also announced that the diesel fuel levy refund would be extended to manufacturers of foodstuffs for two years.

The government charges a levy on fuel to raise tax revenue and to cover the costs associated with purchasing fuel and distributing it in the country.

The two largest contributors to the fuel levy are the RAF levy and the general fuel levy. 

The RAF provides​​ ​​cover for injuries and deaths sustained from car accidents on South African roads. The RAF levy will still account for R2.18 per litre of petrol or diesel.

The general fuel levy is intended to raise government tax revenue and flows into the National Revenue Fund together with all other tax revenue. 

The general fuel levy stands at R3.85 per litre of petrol and R3.70 per litre of diesel.

There were no general fuel levy or RAF levy increases announced in the 2022 budget either.

Earlier this year, the AA argued in a statement that the government should not increase fuel levies in the budget.

“Consumers can simply not afford any more price shocks, and considering the impending 18.65% increase to electricity rates, an increase to the levies will deal a massive blow to personal finances,” said the AA.