Petrol prices in South Africa is set to increase in pump price as fuel taxes have not stopped surging in recent times, leading to the much-debated increase that will commence today, Wednesday 6th, March 2024.
The pump price of petrol and even diesel are set to increase by R1.20 per litre from today, Wednesday 6th, March 2024. This now brings the prices of In March, this will climb further still to R24.45/litre and R22.42/litre, respectively.
Taxmobile.Online has compiled all the major talking points you need to be abreast of concerning the tax surge and pump price increase.
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Petrol Prices in South Africa Increases: All You Need to Know
- In January 2004, petrol and diesel prices were significantly lower compared to January 2024, with 95 unleaded petrol costing R3.69/litre and diesel costing R3.35/litre. By January 2024, these prices had risen to R22.49/litre and R20.63/litre respectively.
- Today, March 6th 2024, prices are set to increase further to R24.45/litre for petrol and R22.42/litre for diesel.
- The price increases are influenced by various factors, including up to 13 different charges that make up and influence regulated petroleum product prices in South Africa. These factors are categorized into external and internal components by the energy ministry.
- External factors include the global market price of the product in dollars, which is multiplied by the US$/R exchange rate, along with additional costs such as insurance, storage, and transport.
- The value of the rand against the US dollar has significantly declined over the years, impacting fuel prices.
- Fuel taxes and contributions towards the Road Accident Fund (RAF) have seen substantial increases since January 2000, with petrol users experiencing a 335.98% increase in fuel taxes and over a 1400% increase in contributions towards the RAF. Diesel users have seen similar increases.
- Since 2002, diesel and petrol consumers have been contributing equally towards the RAF, with larger increases observed from around 2009.
- The RAF has experienced significant year-on-year hikes over the past 25 years, consistently surpassing the inflation rate.
- Finance Minister Enoch Godongwana announced no increases to the general fuel levy for the 2024/25 financial year, providing some relief to South African motorists.
- However, concerns remain about the impact of tax and levy hikes on the poorest individuals who rely on public transport, as any fuel price increases may lead to increased costs being passed on to consumers.
- The Automobile Association (AA) is cautious about government reliance on fuel levies for easy tax increases but is pleased that no new increases have been announced for the near future.