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Definition

A general tax changed per litre of petrol sold. This tax is administered by the National Treasury, and despite most people thinking it is used to maintain the roads, it is a general tax included with other taxes and used for other expenses, of which road maintenance is just one. South African Reserve Bank assumptions show that taxes and levies on fuel are expected to rise by 5.2% and 2.7% in 2022 and 2023 respectively. The General Fuel levy is currently pegged at R3.93 per litre. The problem with increasing this levy is that it is highly inflationary and reduces consumer spending directly. If consumers have to spend more money on a tank of petrol then they have less money to spend on everything else.

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