National Treasury will not raise the General Fuel Levy and Road Accident Fund Levy for 2023, according to Finance Minister Enoch Godongwana.
Godongwana stated there are no significant tax ideas in this budget since tax revenue collection for 2022/2023 is anticipated to reach R1.69 trillion, exceeding the 2022 budget by an estimated R93.7 billion. He made these remarks in his budget statement yesterday.
As a result, the General Fuel Levy and the Road Accident Fund (RAF) Levy will both continue to be 18% of the retail price. Currently, the RAF levy is R2.18 per litre of 95 petrol (inland price), while the General Fuel Levy is set at R3.94 per litre (inland price). When combined, they raise the price of petrol and diesel by R6.12 per litre.
The minister also announced price reductions for food producers related to diesel usage.
“The RAF fee refund for diesel used in the production process for generators, will be extended to makers of foodstuffs in an effort to lessen the impact of the electrical crisis on food costs. Beginning on April 1, 2023, this will be in effect for two years,” he said.
Over the last year, South African drivers have had to contend with rising petrol prices.
After Russia’s invasion of Ukraine, which caused global petrol prices to soar, the government attempted to provide some relief to drivers in 2022 by reducing the fuel charge by R1.50 per litre. The alleviation, though, only lasted for a few months until it was dropped by 75 cents per litre by the end of the year.
The price of fuel increased this month as a result of rising Brent crude oil prices, higher petroleum product costs abroad and a stronger US dollar.