2024 Budget brings no fuel levy hikes but big increases still on the cards

Fuel price fuel pump petrol price petrol pump Credit Newspress

Fuel price fuel pump petrol price petrol pump Credit Newspress

Published Feb 21, 2024

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Finance minister Enoch Godongwana has once again avoided the temptation to raise fuel levies for 2024.

The Minister announced during his 2024 Budget Speech that there would be no increases in the General Fuel Levy for the 2024/25 financial period.

South Africans are already paying significant fuel taxes, with the current General Fuel Levy amounting to R3.95, while the Road Accident Fund levy adds an additional R2.18 to the tax burden.

However, from April 3, the carbon fuel levy will increase to 11 cents per litre for petrol and 14 cents for diesel, up from today’s 10 cent and 11 cent penalties.

But the big elephant in the room for embattled motorists are the high international oil prices that are expected to bring significant petrol and diesel price increases next month.

The latest daily snapshot from the Central Energy Fund shows that both petrol and diesel could go up by around R1.20 per litre from the beginning of March 2024.

However a slightly stronger rand could see this number subsiding slightly between now and the end of this month, although it’s unlikely that the increases would fall below the R1 mark.

Should the above predictions prove to be accurate, South Africans will end up paying R23,72 for a litre of 95 ULP at the coast and R24.44 in Gauteng, where 93 ULP will rise to about R24.08.