Fuel tax increases to hit motorists in South Africa from April
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The National Treasury has announced an increase in the general fuel levy and Road Accident Fund levy to take effect from 7 April 2021.
The increase will see motorists pay an inflation-related increase of 15 cents/litre in the general fuel levy and a higher-than-inflation increase of 11 cents/litre in the Road Accident Fund levy.
While the increases are largely in line with expectations leading up to the budget speech, further increases in the fuel levy will likely have inflationary effects and increase transportation costs.
Dr Francois Stofberg, senior economist at the Efficient Group, said that around 38% of the current petrol price – roughly R5.88 – is made up of these two taxes.