SA DRIVERS TO DIG DEEP: The weakening Rand and levy increases contributed to fuel-price hikes in April 2016. Image: AFP
Cape Town - As of Wednesday (April 5), the price of fuel in South Africa has increased substantially, with those living inland paying almost R1 more per litre.
The increases for both the coastal and inland regions are 81c and 98c/litre of fuel, respectively.
In February 2016, during his budget speech, Finance Minister Pravin Gordhan announced a 30c/litre increase to the Fuel Levy. This, among other factor, has been included in the latest price adjustments and these funds are treated as general tax by the National Treasury, and not only for road-related expenses.
Fuel is an important commodity in South Africa, and any increase in its price will affect all South Africans.
Affecting SA motorists
According to the Automobile Association, numerous factors, such as transport, storage, levies, customs and excise, etc. influence the price of fuel, including the aforementioned Fuel Levy, as well as the Road Accident Fund (RAF) Levy. In total, almost 37% of the fuel price per liter is allocated to levies.
Motorists can now expect to pay R11.94 (first image) for a litre of fuel at the coast and R12.32 inland.
For example - to fill up a 50 litre fuel tank with unleaded petrol will now cost R597 at the coast and R616 inland.
The AA has produce these two excellent inforgraphic regarding the fuel price hike: