Fuel cheer dented by levy hike – AA
JOBURG - The Automobile Association (AA) said it was concerned that motorists were again being called upon to fund shortfalls in government revenue after the Minister of Finance Pravin Gordhan announced that there would be a 30 cents a litre increase in the fuel levy meaning that petrol's drop has been shaved to 40 cents a litre, and diesel will increase by closer to 45 cents a litre.
The AA said earlier lower international petrol prices, and a stronger Rand / US dollar exchange rate, had combined to create a pleasing 70 cents a litre drop for petrol. The AA was commenting on unaudited end-month data released by the Central Energy Fund. AA spokesperson Layton Beard said some measure of stability had returned to the fuel price picture. Beard said, “Unfortunately a steady appreciation in international diesel prices has meant that diesel will be up by around 15 cents a litre. It was concerning that motorists were again being called upon to fund shortfalls in government revenue. The National Treasury forecasts that the increased levy will add approximately R6.8 billion to the fiscus. This revenue is collected from the most economically active and heavily-taxed sector of the population.”
In their statement the AA said government appeared uncertain over its approach to increases in the fuel levy. “When a moderate increase of ten to 15 cents a litre was proposed to fund the Gauteng Freeway Improvement Project it was rejected by South African National Roads Agency Limited.,” the statement read.
The AA pointed out that the combined increase in the fuel levy over the past two budgets (2015 and 2016) amounted to 60.5 cents a litre, with an additional 50 cents a litre going to the Road Accident Fund since 2015.
