While we await the new budget for the year, there are already warnings about more fuel tax increases.

The AA has warned the government against any planned fuel tax increases in its 23 February budget, which it says will be particularly damaging following record-high increases.

The AA has also called on finance minister Enoch Godongwana to initiate a review of the current fuel pricing policy.

We understand that the government is under a lot of pressure to ease its financial burden, and we sympathize with that.

We also know that the economy is facing a lot of challenges and that the revenue raised from the two main levies is important.

However, we think that it is important to deliver a Budget that is in the best interest of the country, even if it is difficult.

“Increasing the levels of the General Fuel and Road Accident levies will have a negative impact on the poorest members of society,” the AA said.

The General Fuel Levy is currently pegged at R3.93 per litre (up from R3.77 in 2021) and the RAF levy at R2.18 per litres (up from R2.07 in 2021). The combined levies add R6.11 to every litre of petrol and diesel sold in the country.

The finance minister’s February Budget Speech usually includes any adjustments that will take effect from the following April.

Neighbouring countries who buy fuel directly from South Africa do not add these taxes to their fuel pricing, making their fuels cheaper than it is in the country which supplies them, the AA said. 2021 saw fuel prices reach record levels and they are again touching those levels, despite a decrease to fuel prices in January.

The AA warned that any changes to the collection rates of these taxes would have severe consequences for consumers and urged that they not be altered.

The country faces many economic challenges, one of which is high fuel prices.

These prices are adding to the challenges and instead of accepting the current model, we must seek solutions that benefit consumers.

For instance, we can review the funding of the poorly managed Road Accident Fund.

The statement said that the reliance on the RAF is a result of South Africa’s road safety issues and that more attention needs to be given to this for a long-term solution.

The AA said it will also highlight that any tax increases will be viewed in the context of current spending, corruption, increases to utility fees, and increases to living costs, all at a time when more people than ever are unemployed in the country.

This will be used as a justification for any increase in taxes.

“We need to take drastic measures in order to grow our economy; one way we can do this is by dealing more effectively with fuel prices.” the AA says.

Fuel Zone