Fuel levy: 393 cents per litre.
How much tax is on fuel in South Africa?
There are two major taxes included in the fuel price — the general fuel and the Road Accident Fund levies — which together comprise around 40% of the price of every litre of petrol and diesel sold in the country. The general fuel levy (GFL) is now R3. 77 per litre of petrol and R3.
How is the fuel price calculated in South Africa?
The Basic Fuel Price (BFP) is calculated based on costs associated with shipping petroleum products to South Africa from the Mediterrean area, Arab Gulf, and Singapore. These costs include insurance, storage, and wharfage (the cost to harbour facilities when off-loading petroleum products into storage).
What are fuel levies?
The RAF Fuel Levy income is a charge levied on fuel throughout the country and the quantum of the RAF Fuel Levy per litre is determined by the National Treasury on an annual basis, whereas total fuel sales are influenced by a number of macro-economic factors.
What is the current RAF fuel levy?
The RAF is funded by a fuel levy which is paid by every motorist in South Africa. The Road Accident Fund levy currently accounts for R2. 07 for every litre of both petrol and diesel sold. This provides the RAF with an average annual income of around R43 billion, according to Letsoalo.
What percentage of fuel is tax?
The cost of a litre of fuel – where the money goes
VAT is charged at 20% of the wholesale price plus the duty, which equates to 16.7% of the final price.
Why is petrol so expensive in South Africa?
There are two factors that influence the price of petrol, namely external and internal: External factors: The exchange rate – that is the price of the dollar vs the rand. Internal factors: These include rising prices in crude oil, transport costs, and taxes and levies.
What is the basic fuel price?
The Basic Fuel Price (BFP) is based on the import parity pricing principle i.e. what is would cost a South African importer of petrol to buy the petrol from an international refinery, transport the product from that refinery, insure the product against losses at sea and land the product on South African shores.
Who controls the price of fuel?
The price of gasoline is made up of four factors: taxes, distribution and marketing, the cost of refining, and crude oil prices. Of these four factors, the price of crude oil accounts for nearly 70% of the price you pay at the pump, so when they fluctuate (as they often do), we see the effects.
What is the profit margin on fuel?
Generally, the markup (or “margin”) on a gallon of gas is about 15 cents per gallon (gross profit before expenses). Factoring in expenses, which include rent, utilities, freight, labor and credit card fees, a retailer is left with about 2 cents per gallon in profit.
What is the effect of fuel levy?
The results show that increasing the tax rate on petroleum products results in higher petroleum prices, which again put upward pressure on intermediate input costs. Households in the Western Cape will experience a decrease in per capita expenditure, as unemployment increases and returns to factors employed decrease.
How is fuel price decided?
In the domestic market, fuel price is partly shaped by actual supply and demand, and mostly by taxation and dealer commission. Let’s take the example of Delhi, where refineries buy crude oil at Rs 29.34 per litre. OMC charges the dealer Rs 29.71 and the Centre levies Rs 32.98 as excise duty.
Is fuel levy a direct tax?
The main levies attached to the sale of petrol and diesel: Fuel levy: This is a direct tax on motorists which is channelled straight to Treasury and is not ring-fenced for roads, as many believe.
What is the petrol price for March 2020?
Here is the official petrol price for March
|Fuel (Inland)||February official||March official|
|95 Petrol||R15.67||R16.32 (R15.84 March 2020)|
|93 Petrol||R15.50||R16.15 (R15.52)|
|0.05% Diesel (wholesale)||R13.58||R14.12 (R14.03)|
|0.005% Diesel (wholesale)||R13.61||R14.17 (R14.08 )|
Who controls the petrol price in South Africa?
The petrol retail price is regulated by government, and changed every month on the first Wednesday of the month. The calculation of the new price is done by the Central Energy Fund (CEF) on behalf of the Department of Energy (DOE).
What is the increase in levy for fuel?
During his 2020 Budget Speech held in parliament, Finance Minister Tito Mboweni announced fuel levies would increase by 27 cents in total. This comprises a 15 cents per litre rise in the general fuel levy, while the Road Accident Fund levy is set to increase by 11 cents and the Carbon Fuel levy by 1 cent.