One of the announcements in the 2020 Budget Speech was an increase in the General and Road Accident Fund levies.

The Automobile Association (AA) is not impressed by these decisions and claims it is 'dismayed at the increases to the General Fuel and Road Accident Fund levies.'

According to Finance Minister Tito Mboweni, there'll be a combined 25 cents increase which will contribute to both. The breakdown is 16 cents towards the General Fuel Levy, which now makes it R3.63 for every litre of fuel, while the Road Accident Fund levy increases by 9 cents to R2.07. This means that R5.70 or around 40% of the price of a litre of fuel is just pure tax.

“We acknowledge that revenue must be collected towards the fiscus, and the difficult decisions the Minister had to make in preparing this Budget. However, as we pointed earlier, the increases to the fuel levies will hurt the poorest of the poor hardest, and will make transport costs that much more expensive for many who rely on transport daily to earn a living,” says the AA.

“These increases will invariably be reflected in increases to public transport and taxi fares. For those in our country who count each cent to get by each month, this is extremely worrying. The financial impacts of the increases cannot be underestimated and we are concerned about how this will impact on these citizens,” notes the AA.

Further Reading

Last Minute Changes for Feb Fuel Prices

Fuel Price Breakdown: What do you pay for?

5 Ways to Beat the Fuel Price Hike

Most Fuel Efficient Budget Cars in SA

Most Fuel-Efficient Double-Cab Bakkies in SA

5 Fuel-Saving Car Features & How They Work

Most Fuel Efficient Budget Cars in SA

Most Fuel Efficient Diesel Cars in SA

Most Fuel Efficient Petrol Cars in SA