Stronger rand set to ease the blow of fuel taxes for South African motorists at the pumps
Petrol and diesel prices are likely to decrease marginally in June.
Image: File
South African motorists are set to face the first increase in fuel taxes in three years, yet a stronger rand is poised to soften the blow for drivers in June.
The latest adjustment to fuel prices will take effect on Wednesday, June 4, with early data from the Central Energy Fund suggesting possible price decreases for both petrol and diesel.
Current estimates indicate that petrol could see a reduction of around 20 cents per litre.
However, the looming 16 cent increase in the General Fuel Levy (GFL) will limit this decrease, bringing it down to approximately four cents.
As it stands, 93 Unleaded petrol is priced at R21.29 per litre in Gauteng, while 95 ULP is retailing at R21.40 inland and R20.60 along the coast.
In contrast, diesel is on track to experience a more substantial reduction.
Although initial calculations indicated an over-recovery of 51 cents, the 15 cent increase in the diesel levy means that the expected dip will now be around 36 cents.
The decrease reflects the stronger rand, which has buffered South Africans from the sting of rising international oil prices that could otherwise spell trouble at the pumps.
However, motorists should brace for the possibility that renewed spikes in oil prices may soon force them to contend with the heavy tax burden fuel carries, particularly as the 2025 levy increase looms on the horizon.
This adjustment will see the total tax on petrol rise to R6.37 per litre, including the Road Accident Fund levy which stands at R2.18.
In an effort to offset a budget shortfall compounded by the controversial cancellation of a previously proposed Value Added Tax (VAT) increase, Finance Minister Enoch Godongwana announced the fuel levy increase during his latest Budget Speech delivered on May 21.
The proposal followed significant political pressure, highlighting the sensitive balancing act facing the South African government.
As these developments unfold, the Economic Freedom Fighters (EFF) have reacted swiftly by filing an urgent court application aimed at suspending the impending fuel levy increase
As the parties await the Western Cape High Court's ruling on this matter, the anticipated relief at the fuel pumps in June may not be as pronounced as hoped.
With the backdrop of ongoing economic challenges, motorists across South Africa continue to navigate an increasingly complex landscape, grappling with fluctuating prices and regulatory shifts. It remains to be seen how forthcoming judicial decisions will ultimately impact the fuel price narrative moving forward.
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