1 April looms over South Africa like a particularly sick April Fool’s joke. It’s time for the dreaded VAT increase. As companies in every single industry scramble to get everything in order, the consumers – that being you and I – are facing assault on a personal level. A hike in the fuel price. You didn’t think the lull would last forever, did you?
But wait, according to the Automobile Association, petrol price fluctuations are indicating a decline of around 12c a litre of petrol and 18c a litre of diesel.
International oil prices have been in our favour. The Rand/US Dollar exchange rate has remained relatively flat for the last month. We have a president who isn’t Jacob Zuma. So, what’s the problem? They’ve hiked the levies, of course. Going into April, we’re all going to feel it.
Hike in fuel price faces staunch criticism
As announced in the budget speech, we can expect an increase in the general fuel and Road Accident Fund (RAF) levies. The increases come into effect on 1 April, along with the change of VAT from 14% to 15%.
Minister Malusi Gigaba, announced that the General Fuel Levy will go up by 22c from R3.15 to R3.37. That’s a 7% increase. The RAF Levy will see an increase of 30c, from R1.63 to R1.93 – an 18% increase.
These increases amount to a total increase of 11% on the current levies, from R4.78 to R5.30.