If you’re anything like most of South Africa, you’re looking around at ways to save money. Fuel prices aren’t making that easy, but they’re not quite as bad as they could have been. That’s because the South African government has chosen to extend the country’s tax break until August. Sort of.
Because of government intervention, the inland petrol price increase, as of today, is ‘only’ R2.43/litre for both 93 and 95 octane fuel. Diesel climbs by about R1.10/litre. This isn’t the bloodbath we were expecting, but it still means that a litre of fuel costs motorists around R24 per litre.
You’re fuel-ling yourself
The price of gas would have been at least R25/litre, if not for the government extending its tax break on the general fuel levy. Which it’s gone and done, but it’s not as positive a change as you might think. For starters, this break expires in August this year. Not the end of August, mind you. The beginning. And the relief will become less relieving as the weeks pass.
So, for the month of June, the R1.50/litre discount will apply. This will remain the case until 6 July, after which the fuel discount will fall to R0.75/litre. So expect the price of petrol and diesel to increase by at least 75 cents in July, no counting whatever other economic witchcraft derails the fuel price in SA by then.
The 75c/litre discount will apply until 2 August. On 3 August, that discount falls away. So expect another 75-cent fuel price increase for the month of August that will completely disregard anything else happening in the economy at the time.
“The temporary reduction in the general fuel levy will only smoothen the impact of persistently higher fuel prices on consumers and businesses, as the economy will need to adjust to this new reality. As announced on 31 March 2022, Government will also take further measures to help reduce fuel prices in a more sustainable manner.”
There is another, slight, discount on the horizon. The demand side management levy for inland drivers will be dropped (saving 10c/litre) and the basic fuel price will also be dropped by 3c/litre. Eventually. These changes will be minor, but permanent.