Carbon Tax Eats into Petrol Price Cut for June

Over the past month with the South African rand and the international oil prices, petrol prices have been on the rise and now the dust has settled for June’s fuel price. This month it seems that the petrol price will remain stable according to the Automobile Association, who is actually predicting a price decrease of around 1 cent based on the month end data that was released by the Central Energy Fund. However, diesel will probably go up by about 24 cents a litre. 

This then means that 93 Unleaded inland will be about R16.47 and 95 ULP will be about R16.66 inland and R16.02 at the coast. 

However, these prices are not under normal circumstances as in fact petrol would have decreased by about 10 cents a litre and the hike on diesel would have been limited to 14 cents. The new Carbon Tax that was announced in the February Budget Speech has eaten up the decrease. This Carbon Tax is set to kick in at the beginning of June, which adds 9 cents to petrol per litre and 10 cents per litre for diesel. 

Of course the carbon tax has been highly criticised and Heinrich Volmink, executive head of The Organisation Undoing Tax Abuse said that a carbon fuel levy that doesn’t have a clear showing that it will be used specifically for climate change seems to be deceitful. 

The fuel price situation is not set in stone and will continue to unfold in the months to come as there are a number of issues that could impact oil prices further in 2019 and the AA has warned for further economic storms ahead. 

Article Source: https://www.iol.co.za/motoring/industry-news/june-petrol-price-cut-to-be-swallowed-by-carbon-tax-24253323