Gordhan explains fuel hike

Comment on this story
iol pic busrep Pravin Gordhan_ REUTERS Finance Minister Pravin Gordhan delivers his Budget speech at Parliament.

Cape Town - The high price of oil and the weaker rand have contributed to the higher cost of fuel, Finance Minister Pravin Gordhan said on Thursday.

“Oil is extraordinarily high,” he said at a televised New Age breakfast briefing.

“And for various reasons the rand has been settling at R8.50 to R9 for the past few years.”

He said the weaker the rand, the more expensive the imports into South Africa became.

Gordhan announced on Wednesday during his 2013 Budget that there would be a hike in fuel costs on April 3.

This includes an increase in the general fuel levy of 15 cents a litre and eight cents a litre for the Road Accident Fund.

The general fuel levy was expected to contribute about R3.2 billion in revenue for the 2013/14 fiscus.

Gordhan explained that a third of the fuel levy went to the RAF.

“The RAF is a huge burden. It has a deficit of R30 to R40 billion.”

A review was set to take place to restructure that fund.

Gordhan said for Gauteng residents, there was a small relief.

“Gautengers for the past few years were paying for building a new pipeline and that part of levy has now been removed.” - Sapa

Click here for IOL’s full coverage of the Budget

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines