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Petrol pump or cash cow?

Fuel levy revenue has tripled in the past decade – to R75bn a year.
Milking it … the taxman is set to take more than 40% of whatever it costs to fill a tank with 93 Octane in the coming financial year. Picture: Moneyweb

Those who suspect that the taxman has increasingly been using fuel levies as a way to increase overall tax revenue are correct.

While the amount motorists pay at the pump is largely down to the vagaries of the value of the rand to the dollar, as well as the ups and downs of international oil prices, government has not been shy to use the fuel levy to boost its coffers.

This can be seen in revenue from the fuel levy shooting up from R24.48 billion in the 2008/9 financial year to more than R75.37 billion for 2018/19. By comparison, the total amount of tax collected has only doubled from R616.99 billion to R1.28 trillion over the same period.

Source: SA Government

This means that R1.77 of every litre of petrol purchased went to the taxman (in the form of the fuel levy, the Road Accident Fund levy, and customs and excise payments) 10 years ago. In this financial year, this figure has risen to about R5.73 a litre.

Hard-pressed motorists are set to contribute even more, with fuel levy income projected to rise to over R82.9 billion for the 2019/20 financial year.

Tax as a percentage of the total price of fuel has been tracking ever-higher: the 23.7% that applied to 93 Octane petrol a decade ago set to rise to 40.6% in the coming financial year. Diesel will see an even steeper increase, rising from 22.1% to 41.8%.

Source: SA Government

The signing into law of the 2019 Carbon Tax Act, which is meant to lower emissions, is also expected to increase the price of fuel in the country.

Government showed some sense and perhaps acknowledgement that it had been taking a bit more than it should have when President Cyril Ramaphosa reduced an expected increase earlier this year. It didn’t last, however; the weakening rand and rising global oil prices eventually forced it to push up local prices.

Rising fuel costs, higher interest rates and lower-than-inflation wage increases have been putting hard-pressed consumers under increasing pressure. There has been some respite as petrol prices were cut by 96c to R15.61 a litre at the beginning of the month.

Motorists are, however, not bearing the fuel levy evenly. The tax on diesel has been disproportionally higher than that on petrol as government has been pushing through higher increases on this form of fuel over the past five years.

It should be noted that as diesel, unlike petrol, is unregulated, consumers can shop around for lower prices. Diesel is also sold at a lower price per litre than petrol and is more fuel efficient.

Even so, whatever is being paid looks likely to thin out the wallets of motorists for some time to come.

Source: SA Government

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The hard part is that there is an ever increasing body of genuine scientific evidence to prove that Global Warming and the carbon dioxide scares are no more than elaborate lies. Highly respected academics are saying that it is no more than a ploy by governments to jack up taxes.

Greenies obviously disagree but have they ever produced fact-checked numbers to back up their claims of “proven evidence”? Never.

Firstly, the carbon tax only added 9 cents, of the R5.73 govt is collecting, if you want someone to blame for the high tax on fuel I suggest you start asking those folks at the RAF to spend their money more wisely as that is a FAR bigger chunk that the 9 cents Carbon tax.

Secondly, care to point me to a peer reviewed study by a academic saying that global warming and Co2 are only used as scare tactics?
I would LOVE to read it.

And the world is flat, vaccines cause autism, the CIA financed 9/11 and the time series pictures of melting glaciers are all done on photoshop. Just because the Government is screwing drivers, it does not mean that climate change is made up.

I classify people that deny climate change in the same group as flat-earthers.

“an ever increasing body of genuine scientific evidence to prove that Global Warming and the carbon dioxide scares are no more than elaborate lies”

Links, please (only *reputable* genuine science)

Oh please, global warming is entirely real and it’s not the problem here. The government has been fleecing the small percentage of the South African populace that actually pays its bills for years now. Why do you think tax avoidance is so high in this country? They have to make up for that so they hit people where they can’t avoid it, on property transfer duties, import duties and levies on electricity and water. There’s a hundred ways they can stick their hands in our pockets. The tax base is shrinking and the government’s bills are climbing ever higher. The carbon tax is not the issue here.

Oil company Exxon linked CO2 emissions to climate change in an internal report it produced in 1982. The observational evidence matches its predictions closely.

The Anthropocence Era proceeds apace.

And remember the fuel levy was put in place mainly for road maintenance. Now yesterday we saw that the lack of maintenance is shocking!! Thank you ANC for looting it !!!

So first we collapse the railway infrastructure and then we milk road logistics through fuel tax. Is there such a thing as orchestrated incompetence or is it blind luck?

Currently saving up to buy a hybrid or electric vehicle in 2021. Once connected to my roof panels I’m sure to get return on the premium price. Question is though – where will they steal next when fuel sales drop in 5 to 10 years?

I am beginning to think that orchestrated incompetence was the order of the day.

We thought they could not run a country so have lamented that all along, feeling sorry and blaming BEE and BBEEE and EWC, WMC etc.

Back at the ranch they probably planned this on Robben Island, the cadres in the lime quarry all at the water station planning on how to collapse one structure after another, appoint smoke and mirrors commissions, raise taxes, raise VAT throw money at SOE’s etc.

They never had any intention of governing the country it was all about stripping/looting and running it into the ground.

The secret code was “it is the collective” never take responsibility and blame apartheid.

They are geniuses, it is much easier to try and do something right than to deliberately and consistantly mess-up and keep it going for so long.

Worse than kids in a candy store.

Think you’re right!

You must either raise taxes or cut spending.

This government has no ability whatsoever of doing the latter.

Far to many people employed doing nothing except getting up to mischief.

Imaging we had a government that cut cost and spending wherever possible and then cut taxes and fuel levies?

This lot can only think of reasons why they cant and not a single reason why they can.


What is going to happen when electric cars are widely adopted? Bye-bye fuel levy, what then?

They will hit you through the Licence or the electricity price, if we have electricity.

Upfront tax on electric vehicles I reckon. If I recall it’s a big % and likely to get bigger in future.

When you see that roads require excess of 400+bn (mainly provincial and local) and that people refuse to do the user pay roads (eToll) you realize that this country is headed down the loo because of the same people who complain about corruption and fraud.

Someone needs to explain how eTolls issue is any different to Soweto not paying electricity. I see the Soweto commitee is taking a leaf out of the OUTA book and claiming they will not pay as long as Eskom has not solved their fraud and corruption issues as well as gov. Yah that road to hell looks pretty hey..

They’ll steal then break the sun

So are Gauteng residents ready for paying 50c to R1 more per liter? I reckon a special fuel levy will come to pay for the eTolls some refused and will result in inflation of goods & services (because u can’t use side roads to avoid it).

Of cause gov score more tax by forcing taxi to pay income tax to get their fuel levy paid back to them

Then people will just fill up in a neighbouring province. Gauteng is not that big.

for most people it would not be worth it to drive further.
On a 60L tank car, you will save R60, if you vehicle averages 10Km/L

If you have to drive say 30Km to a filling station and 30Km back to your house, you will burn 6L costing R16 per/l = 6 x R16 = R96

So spend R96 to save R60?

There’s no question about it: – it is for sure a unique government cash cow – the breed with a double udder and 8 teats – it is unique to the republic of south africa.

If we all use sun and wind for transport and home they will tax it. The tax paying public will never save a dime.

In a few short words, GOVT.IS BANKRUPT!

Name one that isn’t

The RAF should be shut down quite frankly, constantly bankrupt and clearly either incompetent or corrupt management in place.

It is interesting that the gov refuses to ring fence a single cent of the fuel levy for road maintenance. On top of the fuel levy, there is a portion from rates & taxes and tolls. So the fuel levy is just another tax that has tripled in 10 years for the morally and financially bankrupt ANC. Ridiculous country we live in.

….a “Cash Pump” ?

While we all know by now the Fuel Levy is a (convenient) tax collection method, is the Taxi industry still entitled to a certain subsidy per litre?

More reasons to boycott eToll

SA simply does not have enough cash for all the ANC-in-government’s priorities which are:
1 To support their bling lifestyles, overseas jaunts, etc
2 Sponsor tenderpreneurship and other forms of “invest in the ANC and Corruptheid
3 Pay for the constant court cases against and between ANC/government
4 Provide crumbs to their voters (who get more “social grants” than they ever had before)
5 Run the country properly
6 Fix the destruction and backlogs of Corruptheid and Apartheid, including infrastructure (Eskom) and education.
7 Expand the economy so that all can benefit from it

So all they can do is squeeze those with income or wealth harder whether through direct or indirect taxes; being the ANC, they prefer stealth.

Part of our problem in SA is the wide prevalence of incompetent appointments to ministerial positions since ’94, but by far the biggest problem we have in SA is appointments such as Tito Mboweni.

Who knew he was an “international advisor of Goldman Sachs International”, you know those folks involved in toxic assets and the sub-prime mortgage crisis that started in USA in 2007-2008, spread around the world to lead to a global economic meltdown while they profited by “betting” both sides.

It’s all about raping the workers and taxing them into poverty, as we are currently, for self gain. Make no mistake boetie Tito may be a minister currently but he is surely earning a fat USD based retainer as advisor to goldman sachs.

His mindset became self evident when he backed the failing gauteng e-toll scheme, he has the same “tax-em and f**k-em” attitude as does the rest of the money grabbers out there.

End of comments.





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