Drivers will pay more for fuel from April 3 this year, when the Road Accident Fund (RAF) levy and general fuel levy increase by 5c and 15c a litre respectively.
In addition, a carbon tax will be introduced with effect from June 5 at a rate of 9c a litre for petrol and 10c a litre for diesel.
This brings the total tax at the pump to R5.63 (40.6% of pump price) for petrol and R5.49 (41.8% of pump price) for diesel.
Finance minister Tito Mboweni noted that the RAF levy increase is insufficient to address the fund’s R215 billion liability. “We urge the Department of Road Transport to quickly resubmit the Road Accident Benefit Scheme Bill for Parliament’s urgent consideration. It will help stabilise fuel prices,” he said.
The fund’s accumulated deficit is expected to drop at an average annual rate of 18.5% over the medium term to R402 billion in 2021/22. The budget review notes that on an accrual basis, the fund will have an average annual deficit of R53.3 billion, largely as a result of claims awarded but not paid.
Speaking to the press before he addressed Parliament on Wednesday, Mboweni said that when consumers buy a car with bank finance, they are usually only allowed to take delivery of the car once they provide proof of insurance.
“Everyone should have their own insurance when they buy a car,” he said. “It is your personal responsibility to buy insurance. Don’t burden the state with your carelessness.”