How SA’s fuel taxes affect daily life

THE 2025 Budget, passed by Parliament on April 2, delivered some painful punches to the average South African.

- JASON WOOSEY [e-mail]

The incremental Value Added Tax (VAT) hike and the lack of inflation-ary adjustments to combat tax bracket creep, among other aspects, are expected to put household budgets under even more pressure from May 1.

But there were sighs of relief as the General Fuel Levy (GFL) and Road Accident Fund (RAF) levies have remained unchanged for the third year in a row, although the carbon tax was raised by three cents per litre.

These taxes have been a point of contention in the past, and with good reason. Even though the two main tax components, the GFL and RAE haven't been increased since 2022, together they deliver a significant sting to South African motorists every time they fill their tank.

In fact, when one factors in the transport costs of practically every item that we purchase, fuel taxes also impact the basic cost of living in an indirect but significant way.

Consider that for each litre of petrol that you put into your tank, R6.21 is directed to fuel taxes.

Think of it this way: Every time you put SO litres of fuel into your average-sized SUV, R310 goes straight to the government. And because the GFL is a generalised tax, it is not specifically directed to road maintenance or safety campaigns as one might imagine it would in an ideal world.

A litre of 95 Unleaded petrol costs R20.83 per litre at the coast, following this month’s welcome decrease of 72 cents, while 93 Unleaded in the inland regions costs R21.51.

This means fuel taxes make up 30% of the petrol price at the coast and 29% of the inland cost.

As it stands, this year, the General Fuel Levy on petrol is R3.85, while the Road Accident Fund levy amounts to R2.18; the carbon tax takes a further 14 cents and customs and excise duties are listed at four cents.

Diesel attracts a GFL of R3.70 and carbon tax of 17 cents, bringing the total tax tally to R6.09.

Petrol itself costs R10 per litre.