Despite the last two months welcome cuts in petrol and diesel prices, South African motorists have been paying more than R20 per litre of fuel for well over two years now. This as the government levies and taxes imposed on fuel continue to escalate.
Since 2021, both the General Fuel Levy (GFL) and the Road Accident Fund (RAF) levy have increased by about 5%.
The levies and taxes pose a scenario of a double-edged sword as state coffers benefit billions from the additional charges on fuel prices every year.
Ramaphosa announced fuel price formula reviewIn his Opening of Parliament Address on 18 July 2024, President Cyril Ramaphosa said the fuel price formula will be reviewed to identify where petrol and diesel prices can be reduced.
Petrol and diesel price factorsSouth Africas fuel price is calculated according to the following factors:
