OUTA disappointed that fuel levy discount has not been extended
OUTA notes with concern the high fuel price increase in July, exacerbated by the reduction in the general fuel levy discount.
“This is the highest monthly increase in the price, taking us to just under R27 per litre of petrol,” says OUTA CEO Wayne Duvenage.
“We note that government has not heeded the call for a continuation of the fuel levy reprieve at the full value of R1.50 per litre. Clearly the tax revenue shortfalls have negated government’s ability to continue with the relaxation in the fuel levy. We are now paying the high price of weak economic policy that has given rise to the South African currency punching well below its potential, combined with high taxes and levies applied to petrol.”
The reduction in the general fuel levy falls from R1.50 per litre to 75c/litre, which adds 75c/litre to the price, on top of R1.81 as a result of the under-recovery due to oil price fluctuations. Government has indicated that this is the last month with a reduction in the levy, and it will increase the fuel levy by a further 75c/l, back to R3.85c per litre, where it has been for the prior year.
Petrol goes up by R2.57/l for 95 octane, and diesel goes up R2.30/l – R 2.31/l.
This takes the price of a litre of 95 octane petrol inland to R26.74, about 10% up on last month’s prices.
A soundclip with comment by OUTA CEO Wayne Duvenage is here.