- Fuel levy increases have pushed fuel costs up considerably
- A whopping R5.73 spent on each litre of fuel goes to the government
- This is a major increase from a few years ago
Recent fuel levy increases have seen motorists paying more to fill government coffers.
In 2009, government received R1.77 for every litre of fuel purchased. Now, they get R5.73 per litre.
Total government revenue from the levy has also increased dramatically, from R24.48 billion in 2008 to R75.37 billion in 2018.
The fuel levy is just one of several government-imposed costs on fuel. Customs and excise and funds for the Road Accident Fund also come via taxes on fuel.
These increasing fuel costs, along with wage increases that fall below inflation, continue to put consumers under financial strain.
In particular, fuel levies drive up the cost of several goods and services, as manufactures and businesses have to up their prices in order to maintain profits in the face of rising costs.
This is set to get even worse with the implementation of the 2019 Carbon Tax Act, according to The Citizen. This tax is meant to reduce emissions and help the environment, but it will further push up the cost of fuel.
There are some silver linings, however. Petrol prices were cut by 96c at the beginning of July, helping to ease some of the burden imposed by the levy increases.
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