BUDGET 2024 | Godongwana leaves fuel levies alone but increases carbon tax slightly

Finance minister Enoch Godongwana says there will be no increases to the country’s general fuel levy (GFL) and Road Accident Fund (RAF) levy for 2024.

In his annual budget speech on Wednesday, Godongwana said the government was mindful of the already high cost of living and the impact 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 R4bn. This is money back in the pockets of consumers,” he said.

The two largest levies on fuel — the GFL and the RAF levy — will therefore remain R6.13 on every litre of petrol and diesel sold in the country.

In April, May, June and July 2022, the government slashed the GFL by R1.50/l amid significant fuel increases at the time. However, the levy rates returned to their former levels in August that year and have remained at those rates since.

Godongwana said the carbon fuel levy will increase from 10c/l to 11c for petrol, and from 11c to 14c for diesel effective from April 3 2024.

A discussion paper outlining proposals for the second phase of the carbon tax will be published for public comment later in the year, he added.

South Africans can expect a major increase in fuel prices in March due to increased international product prices and the weak rand. 

Commenting on mid-month fuel data released by the Central Energy Fund (CEF) on February 15, the AA noted the data is projecting fuel prices to exceed R24/l for both grades of petrol, edging close to the R25/l record high seen last year.

TimesLIVE