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Fuel levies could increase in the near future: Outa

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Fuel levies could increase in the near future, as viewed by the Organisation Undoing Tax Abuse (Outa). 

This increase will be a result of the e-toll scheme trying to find alternative ways of funding.

They believe that the E-Toll scheme is expected to be scrapped completely because it’s collapsed.

Finance Minister Enoch Godongwana is expected to make an announcement on the future of Gauteng e-tolls when he tables the Medium-Term Budget Policy Statement later this month.

Outa CEO Wayne Duvenage, says, “We do expect that they are going to scrap the scheme because they don’t have an alternative. The scheme has completely collapsed. The big question is, what are they going to announce it with? Are they going to announce an increase in the fuel levy to try to fund the outstanding bonds? That would be a mistake. Now, we all know petrol is extremely expensive and that. So, we believe that would be a bad decision.”

Last week, the Central Energy Fund said petrol may decrease by around R1 with diesel expected to rise between 12c and 17c per litre.

Automobile Association’s Spokesperson Layton Beard said at the time, “We are looking at around R6 in taxes that are added to every litre of fuel; R3.94 goes to the General Fuel Levy (GFL) and we know that goes to the fiscus. The GFL is one of those taxes that are up for discussion every time the fuel price is being discussed.”

Earlier in September, the Department of Mineral Resources and Energy announced a fuel price drop. Motorists got a reduction of over R2 at the petrol pumps with both grades of petrol decreased by R2.4 cents per litre. Diesel went down to cost between 46c and 56c less per litre.

The fuel price drops will see South Africans paying less for their fuel compared to what they were paying in earlier this year.

VIDEO | Fuel prices drop earlier in September 2022

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