CHOKING ENVIRONMENT: Taking these drivers off the road and putting them in trains or buses will help Joburg cut its carbon emissions significantly Picture: MARIANNE SCHWANKHART

In today's Budget Finance Minister Pravin Gordhan announced a 28 cents per litre rise in taxes on fuel from the beginning of April, which includes an 8 cents a litre contribution to the Road Accident Fund.

In its Budget Review document, the Treasury said the general fuel levy on petrol would rise to 197.50 cents a litre from 177.50 cents a litre, while the general fuel levy on diesel would be increased to 182.50 cents a litre from 162.50 cents a litre. The customs and excise levy on petrol and diesel remains at four cents a litre while the RAF levy increases to 88 cents a litre.

The bottom line is that as from April 6, motorists will be paying total levies of 289.50 cents a litre on petrol and 274.50 cents a litre on diesel. For petrol, this equates to around 26.9% of February's pump price and 26.7% of the diesel pump price.

While motorists won't know it, or feel it, these percentages have dropped over the past two years. In 2010/11, taxes and levies accounted for 31% of the pump price of petrol and 32.6% of the pump price of diesel.

Gordhan also announced that an additional R5.75 billion would be made available to Sanral to cover its debt position regarding the Gauteng toll roads and further concessions have been granted in regard to tolling. The most significant being the capped toll fee for individuals of R550 per month, the AA said.

"We are convinced that despite the latest offering from government the cost to the consumer, as far as the GP tolls are concerned, is going to hit home hard when commodity prices increase as well as transport costs," said Gary Ronald, Head of Public Affairs.

"It is the AA's belief that a dedicated road fund be established or, at the very least, money collected through the fuel levy be ring-fenced for transport, road safety and transport infrastructure projects", he added.

The AA called on government to ensure that the additional burden placed on the road user is spent in such a manner that the benefits of this tax be obvious to those that contributed, within a very short period of time.

Back to Budget 2012 Special Report