Budget Speech 2024: Some fuel relief for suffering South Africans

Budget Speech 2024: Some fuel relief for suffering South Africans

Finance Minister Enoch Godongwana confirmed in his 2024 Budget Speech on Wednesday, 21 February that National Treasury will not hike the General Fuel Levy nor the Road Accident Fund (RAF) levy this year.

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In what was some good news for suffering South Africans, Godongwana mentioned that government is mindful of the current high cost of living and the impact that fuel prices have on food and transport costs.

“In this regard, we are proposing no increases to the general fuel levy for 2024/25. This will result in tax relief of around R4 billion. This is money back in the pockets of consumers,” the minister would have you believe.

So, what does that mean?

According to the BusinessTech website, the General Fuel Levy will remain at 18% of the retail price and the Road Accident Fund (RAF) levy at around 10%.

For every litre of petrol bought inland, the General Fuel Levy amounts to R3.95 while the RAF levy is R2.18.

That means, combined, the two levies account for R6.13 – or 26.4% – of the current total cost of R23.24.

As reported by The South African website, petrol – and diesel – are set to rise in price at midnight on Tuesday, 5 March.

FOR ALL THE LATEST 2024 BUDGET SPEECH NEWS, VISIT THE SOUTH AFRICAN WEBSITE