![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/09\/Fuel-tax-changes.png\")
<\/a><\/p>\nThe graph below shows how the proportion of taxes in the total fuel price has changed over the past 15 years.<\/p>\n
South African motorists are gearing up for a horrific week next week, when fuel prices are expected to rise to all-time highs on the back of an unprecedented monthly increase.<\/p>\n
According to the latest data available from the Central Energy Fund, petrol prices are expected to climb by R1.01 a litre next Wednesday (3 October), with diesel expected to jump by R1.24 a litre.<\/p>\n
This will push the petrol price into the range of R17 per litre – meaning even more pain for consumers.<\/p>\n
Amid demands for intervention to stop the escalation of fuel prices, the government has effectively said that its hands are tied.<\/p>\n
For September, the Department of Energy announced a once-off move to negate the 23-25 cents per litre increase that would have been, but this was seen as largely artificial, as price increases are determined by movements in international petroleum prices, and the changes in currency exchange rates.<\/p>\n
One aspect the government can control however, is the fuel levy and other taxes that make up the final price – which accounts for more than 40% of the pump prices.<\/p>\n
In August 2018, president Cyril Ramaphosa said that government has not ruled out the possibility of reviewing the fuel levies to help ease the country’s high fuel prices.<\/p>\n
However, while reducing or removing taxes could bring the petrol price from R17 a litre to just over R10 a litre, it would in turn would remove billions of rands from the fiscus at a time when South Africa is already experiencing a severe tax shortfall.<\/p>\n
The National Treasury has published its 2018 Tax Chronology, which outlines how the fuel tax structure has changed over the last 15 years.<\/p>\n
In 2003, the in-land pump price of petrol (93 Octane) was R3.92 a litre, with taxes accounting for R1.27 of the total (32.3%). By 2018, this had jumped to R13.90 a litre (February data), with taxes totalling R5.34 – just over 38%.<\/p>\n
In of April 2018 the finance ministry pushing the General Fuel Levy up by another 22 cents a litre from R3.15 to R3.37 (7% increase), and the Road Accident Fund Levy was pushed up by another 30 cents from R1.63 to R1.93 (18% increase).<\/p>\n
The graph below details how the taxes and levies have changed over the past 15 years.<\/p>\n
The graph below shows how the proportion of taxes in the total fuel price has changed over the past 15 years.<\/p>\n<\/a><\/p>\n