DURBAN - South Africans contribute R1,93 to the RAF for every R16 that the spend on petrol reports Business Insider.
12% of the petrol price goes towards the RAF that is double the amount in comparison to the 6% in 2008.
The fund's levy on a litre of petrol has increased from 45c in 2008 to R1,93 in 2018. That is a 330% increase in a ten year period.
In recent times the RAF has had a hard time in paying road accident victims and last year they reported a loss of R34,7 billion.
In comparison, the find received R33,3 billion mostly from the tax on fuel.
Minister of Energy Jeff Radebe disbanded the RAF board last week because of serious divisions and dysfunction. Just recently the Sunday Times reported that the fund spends R500 000 a month to rent 300 chairs.
Around 30% of the money that South Africans pay for petrol goes to taxes while factors like the global price of Brent crude oil, the strength of the rand against the dollar and transportation costs impact the other 70%.
When the Energy Minister announced the increase in fuel prices he said that the drop in the value of the rand to the dollar had a big influence in the petrol price increase.
According to Radebe, the increase would have 30% more if the oil prices were not declining.
Below is a table that shows the increase in inland and coastal petrol prices as well as the increase in fuel levy, RAF contributions and inflation:
Petrol price increase
This week the price of petrol will be increased to a record price of R16 a litre.
According to the Department of Energy, from Wednesday 93 octane will go up by 23 cents a litre and the price of 95 octane will be increased by 26 cents.
Besides petrol, the prices of diesel and illuminating paraffin will also increase too. Diesel will go up by to 24 and 26 cents a litre while illuminating paraffin will be increased by between 22 to 30 cents.
Follow us on Instagram here
- BUSINESS REPORT ONLINE