Business News: Mzansi is paying double for fuel, most of it tax

Business News: Mzansi is paying double for fuel, most of it tax

- South Africa is paying nearly double for petrol in comparison to a decade ago

- The largest portion of the massive increase seems to be going towards tax hikes on fuel

- A weak currency has also added to the steep rise in the cost of filling up with fuel

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South Africans are feeling the bite of steep petrol price hikes, with the cost of a litre doubling over the past decade.

BusinessLIVE reported that global oil prices had declined but this has offered little aid to the country.

A weak Rand and an increase in taxes have ensured the steady price climb for South African motorists, with taxes now accounting for 35% of the overall cost (up from 28% back in 2010).

Briefly.co.za gathered that a litre cost only R8.45 at the coast during the start of the decade, up to R16.30 today.

This comes despite the international cost of Brent crude oil dropping from $90.40 to $69.26 a barrel over the same time frame.

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The Department of Energy, currently headed by Minister Gwede Mantashe, noted that fuel taxes saw a 131.6% increase during this time, spiking from R2.43 to R5.63.

A report claims that 60% of what Mzansi pays for petrol is not actually related to the cost of the fuel itself, taking levies and other handling fees into consideration.

As far as inflation is concerned, fuel would only cost around R12.50 today if this was the only factor involved.

With the nation currently battling difficult economic times and harsh unemployment statistics seeing a vast quantity of citizens struggling to put food on the table, transport has become more difficult to finance.

Citizens who are lucky enough to find work are left stressing about how they will get there, with the prices of basic food items rising with the increase in costs.

Considering the extensive tax burden placed on South African motorists, one can only hope the funds garnered from every litre are being put to responsible use.

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Source: Briefly.co.za

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