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Why you'll be paying more for fuel from today

From Wednesday, motorists will pay 9 cents more per litre for both grades of petrol, 13 cents more for a litre of diesel and paraffin will cost 8 cents more.

Petrol station. Picture: EWN

JOHANNESBURG – The Energy Department says a number of factors have contributed to the fuel price increase, including a weaker rand and the new carbon tax levy on petrol.

From Wednesday, motorists will pay 9 cents more per litre for both grades of petrol, 13 cents more for a litre of diesel and paraffin will cost 8 cents more.

The department's Robert Maake explained: “There’s this slate levy of around 13.16 cents which becomes effective and this is due to the fact that the money in the slate levy, the cumulative balance in this slate levy fund - is beyond the threshold of minus R250 million. So, it’s sitting at around minus R1.4 billion.”

CARBON TAX

Earlier this year the National Assembly passed the long-awaited Carbon Tax Bill.

Based on the 'polluter pays principle,' companies which exceed the threshold of carbon emissions for a particular activity, would be charged R120 per ton of carbon dioxide emissions.

The new tax came into effect this month tax incentives will be offered to minimise the impact.

South Africa became party to the Paris Agreement on climate change, committing to reduce greenhouse gases by 42% by 2025.

At the time, Deputy Finance Minister Mondli Gungubele said substantial technical changes were made to the policy to take into account stakeholder comments.

“I would like to emphasise that climate change is a reality and we will have to prepare to operate in a carbon-constrained economy over medium to long-term. Operating on business as usual basis is no longer an option.”

While the EFF, IFP and Cope supported the bill at the time, the DA's Alf Lees said the country could not afford to introduce another tax.

“What South Africa needs is not extra taxes, instead we need a decrease in taxes in order to stimulate the economy and create jobs.”

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