What South Africans Need to Know About June’s Fuel Price Changes

What South Africans Need to Know About June’s Fuel Price Changes

If you’re wondering what to expect at the fuel pumps this June, you’re not alone. For the first time in three years, South Africa is seeing an increase in fuel taxes. However, there’s some good news amid the uncertainty. Thanks to a stronger rand, motorists will experience only modest price shifts. Here’s a breakdown of what this means for your budget.

Petrol Prices: A Minimal Drop After Adjustments

June’s petrol prices were initially projected to decrease by about 20 cents per liter. Unfortunately, the 16-cent hike in the General Fuel Levy (GFL) will offset most of this reduction. As a result, motorists in Gauteng can expect petrol prices to dip by just 4 cents per liter.

Currently, 93 unleaded petrol retails at R21.29 per liter in Gauteng, with 95 ULP priced at R21.40 inland and R20.60 along the coast. The slight decrease will bring some relief, but it won’t be the significant drop many were hoping for.

Diesel Drivers Get a Bigger Break

For diesel users, the news is a bit more encouraging. The original forecast suggested a 51-cent decrease per liter, but the 15-cent levy hike trims this down to 36 cents. Even with the levy adjustment, this reduction is welcome, considering the heavy use of diesel in industries like logistics and agriculture.

How the Rand Saved the Day

While international oil prices showed slight weakness, a stronger rand helped create favorable over-recoveries for both petrol and diesel. This balancing act prevented what could have been more pronounced price hikes.

The Tax Burden Looms Larger

Despite the temporary relief, South Africans face an increasing tax burden on fuel. This year’s levy increase brings the total tax on petrol to R6.37 per liter, including the R2.18 allocated to the Road Accident Fund.

Finance Minister Enoch Godongwana justified the GFL hike as part of broader measures to address the national budget shortfall. However, this comes on the heels of a cancelled VAT increase, leaving many to question whether motorists are bearing too much of the load.

Court Battles and Political Pushback

Adding to the drama, the Economic Freedom Fighters (EFF) launched a court application to halt the levy increase. Their urgent appeal argues that South Africans cannot absorb additional financial strain. Unless the Western Cape High Court rules in their favor, the muted relief on fuel prices will stand.

What Lies Ahead?

The slight fuel price decreases may provide some breathing room, but the long-term outlook is uncertain. If international oil prices strengthen in the coming months, South Africans will feel the compounded effects of higher taxes and costlier crude.

Your Move: Stay Informed and Plan Ahead

With fluctuating fuel prices and rising taxes, being informed is your best defense. Keep an eye on the trends, consider fuel-efficient driving habits, and plan your budget to adapt to these changes. The road ahead might be bumpy, but preparation can make all the difference.

{Source:IOL}

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