Petrol Is Increasing Again, Calls For Levy Reform Arise



Motorists around South Africa will now need to dig deeper in their pockets if they want to fill up their tanks. Sizeable increases in the price of petrol and diesel were implemented countrywide this week. 



The Department of Mineral Resources and Energy (DMRE) has confirmed that the price of both grades of petrol will increase by more than R1 per litre. The price of a litre of diesel will also be increased by almost R2.

This means that motorists in inland provinces will have to pay R25,68c for a litre of 95 Petrol. Individuals in coastal provinces will pay R24.96 for a litre of the same grade of petrol Diesel customers will pay more than R25 for a litre of the fuel. 

Price Fuel Adjustments For October 2023

  • Petrol 93 will increase by R1,08 per litre
  • Petrol 95 will increase by R1,14 per litre
  • Diesel 0.05% sulphur will increase by R1,96 per litre
  • Diesel 0.005% sulphur will go up by R1,93.70 per litre
  • Illuminating Paraffin will increase by R1,51 per litre
  • The Single Maximum National Retail price for illuminating paraffin will increase by R2,02 per litre
  • Maximum retail price for LP Gas will increase by R2,50 per kilogram 

Impact of Price Increases

The Automobile Association (AA) has warned that the fuel price increases will have negative consequences for all consumers and not just motorists. This is because increases in the cost of diesel will lead to higher transportation costs inevitably filtering through to general inflation.

These increases are going to hit all consumers hard, and they come at a time when most South Africans are feeling extreme financial pressure. It remains concerning, however, that in the face of these increases, [the] government remains silent on its plans, if there are any, on a way forward to deal more effectively with fuel price increases,

The AA’s Layton Beard says that approximately 70-75% of fuel price hikes are directly attributable to soaring international oil prices, making it a substantial factor. 

The depreciation of the Rand further compounds this issue, contributing to the overall increase in fuel costs. Additionally, a 30-cent per litre Slate Levy has recently come into effect, adding further pain at the pumps for consumers. 

Beard says that removing the fuel Levy, which currently accounts for around R4 per litre, is unlikely due to its significant contribution to government revenue. The levy is worth approximately R110 billion annually to the government. 

Suggested Article:

Stakeholders investigating petrol price reduction

The cost of fuel increased significantly during the first six months of 2022. While the cost is expected to decline in the coming months, experts say proposed government fuel relief interventions may not make a significant difference for South Africa’s most vulnerable citizens.





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