While the National Treasury typically announces increases in fuel taxes its February Budget, this year could see a shift in trends, says Jeff Schultz, senior economist of BNP Paribas South Africa.
“Fuel and road accident fund levies have historically seen above-CPI increases.
The General Fuel Levy is currently pegged at R3.93 per litre and the RAF levy at R2.18 per litres . Combined they add R6.11 to every litre of petrol and diesel sold in the country. “Our country faces enormous and complex economic challenges. High fuel prices are adding to these challenges and instead of accepting the current model, we must seek solutions that benefit consumers, not place them in more financial distress. One immediate solution for us, for instance, is to review the funding of the poorly managed Road Accident Fund .
Answering in an oral Q&A session in parliament in December, Godongwana said that he was concerned about these increases to the extent that government may have to intervene and reform the price of petrol.
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