What is Fuel Tax?
A fuel tax is an excise tax imposed on the sale of fuel. In most countries the fuel tax is imposed on fuels which are intended for transportation.
Fuels used to power agricultural vehicles, and/or home heating oil which is similar to diesel are taxed at a different, usually lower rate.
How Much Is Fuel Tax In south Africa?
The general fuel levy stands at R3. 85 per litre of petrol and R3. 70 per litre of diesel, while the RAF levy is currently R2. 18 per litre of petrol and diesel.
How much you now pay in tax when filling up on petrol in South Africa?
Civil society group Outa has written to finance minister Enoch Godongwana, calling for a halt to the annual increase in the fuel levies. The levy increases are announced in February every year in the national budget and typically take effect on 1 April.
“While we understand that we are a cash-strapped nation, we can no longer afford to burden society with higher taxes and levies applied to the price of fuel,” said Wayne Duvenage, Outa’s chief executive.
“We have witnessed substantial increases to the price of petrol and diesel, as a result of ongoing above-inflation increases to the basket of 12 other levies and charges, which have collectively increased by over 125% over the past decade.”
Duve age said that these increases had been well above inflation. The result is a compounding effect that makes the collective cost of levies and surcharges more than R10 per litre of petrol before the basic fuel price is added.
The below graphic, provided by Outa, gives an overview of how fuel taxes over the past decade and what South Africans are currently paying in taxes:
- Fuel levy: R3.83
- Road Accident Fund Levy: R2.13
- Wholesale margin: R0.41
- Retail margin: R2.23
- Other levies such as carbon tax, slate levy and transport costs: R1.43
- Total: R10.03
While the weak rand and the high international cost of Brent crude oil are the main factors that currently contribute to the highest ever prices for petrol in South Africa, the country has experienced much higher prices for oil in the past, Outa said.
“A decade ago in 2011/12, the average price for Brent crude was $114 per barrel, some 36% higher than it is today.
“Fortunately, at that time, our currency was a lot stronger at R7.41 to the US dollar, compared to last month’s average of R15.85. It is, therefore, a combination of our weak currency and the ongoing increases to levies which gives us our highest price of petrol today.”
How is fuel tax calculated in South Africa?
Combined, the General Fuel Levy and the RAF Levy constitute R5,30 of every litre of fuel sold in the country. So, if a litre of fuel inland (93 unleaded octane) costs R14,23, then 37% of this amount is tax. Similarly, if a litre of fuel at the coast (95 octane) costs R13,89, then 38% is tax.
What is the current fuel levy in South Africa?
In phase one of the “two-phase approach”, the treasury announced the general fuel levy would be temporarily reduced, The general fuel levy for petrol will fall from R3. 85 per litre to R2. 35 per litre and diesel will drop from R3. 70 per litre to R2.
What is the km rate for South Africa?
A reimburse travel allowance is an allowance paid to an employee for actual business kilometres travelled, according to either the SARS determined rate – which is R 3.82 per kilometre from 1 March 2021 (down 4% from R3. 98) – or as determined by the employer.
What is the rate per km in South Africa?
“Simply put, the I-Pace costs around 44 cents to drive per kilometer if charged at home and using the national household average of around R2 per unit of electricity.”
The cost per kilometer of petrol and diesel vehicles involves an ever-changing formula given the volatile price of fuel in South Africa.
