https://www.polity.org.za
Deepening Democracy through Access to Information
Home / Audio / Audio Articles RSS ← Back
Africa|Road|Services|transport
Africa|Road|Services|transport
africa|road|services|transport
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Sponsored by

Close

Article Enquiry

No fuel levy, RAF levy increases for 2022/23

Close

Embed Video

No fuel levy, RAF levy increases for 2022/23

An attendee pumping petrol
Photo by Reuters

23rd February 2022

By: Marleny Arnoldi
Deputy Editor Online

ARTICLE ENQUIRY      SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

There will be no increase in either the general fuel levy or the Road Accident Fund (RAF) levy in 2022/23.

The National Treasury has, instead, turned its focus to providing an overall R5.2-billion in tax relief, in support of households and the economy.

Advertisement

Fuel prices in South Africa exceeded R20 a litre for inland unleaded petrol for the first time in December 2021 owing to higher crude oil prices and exchange rate depreciation.

Finance Minister Enoch Gondongwana said on February 23 that the higher prices had put pressure on the cost of transport, food and other goods and services.

Advertisement

The general fuel levy stands at R3.85 per litre of petrol and R3.70 per litre of diesel, while the RAF levy is currently R2.18 per litre of petrol and diesel.

Godongwana explained that, to support consumers and the economic recovery, no increases will be made to the general fuel levy on petrol and diesel for 2022/23, providing tax relief of R3.5-billion.

In combination with the zero increase in RAF levy, these changes will ensure that fuel taxes as a percentage of the price of fuel are below 40%.

The last time that the fuel price was not increased due to a change in either the general fuel levy or the RAF levy was in 1990.

Godongwana said a review of all aspects of the fuel price was needed and, to this end, teams have begun to engage on this critical work.

In 2021/22, taxes accounted for on average 34% of the price of petrol and 38% of the price of diesel – a ratio that is below that of India and Mexico, and far lower than the 60% that is common in Europe.

The fuel levy remains unchanged in 2022/23; however, due to expected growth in fuel sales volumes, government revenue is expected to increase at an average annual rate of 1.3%, from R44.7-billion in 2021/22 to R46.5-billion in 2024/25.

EMAIL THIS ARTICLE      SAVE THIS ARTICLE ARTICLE ENQUIRY

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options
Free daily email newsletter Register Now