Fuel levy hike to hit consumers as road freight costs rise, warns transport association

The Road Freight Association (RFA) believes the decision to increase the General Fuel Levy, as announced in Wednesday’s revised budget speech, will directly affect consumers.

This as transporters cannot absorb increases without detrimental effects on their bottom line, said the association.

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Finance Minister Enoch Godongwana on Wednesday announced an increase of 4% to the General Fuel Levy. This equates to 16 cents per litre for petrol and 15c a litre for diesel).

RFA CEO Gavin Kelly explained that this means Treasury is ‘finding’ R4-billion towards the R75-billion shortfall from the previous iteration of the budget.

“However, this underscores that Treasury would rather tax citizens than cut the wasteful expenditure that brought the country to where it is. Transport will become more expensive, consumers will pay more, and the adage that the government can keep increasing taxes and levies to fund its uncontrolled spending remains true,” he said.

He added that the government does not have money; it belongs to the taxpayers, and the time for accountability and responsibility has come.

“Unfortunately, from June, the cost of logistics – 85% of which runs by road freight – will become more expensive. The consumer will pay more, transport through South Africa will become more expensive and global supply chains will re-evaluate their routes.

“You and I will dig deeper into our pockets for goods and services and transport to and from work while the government has ‘found’ a way to fund its salary and wage increases, as well as all the other vanity programmes it constantly runs. This is not a good decision, neither in the medium nor long term,” he said.

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