The growth in the gross fuel levy income reflects increased economic activity in the country, as well as the 5 cents per litre increase in the RAF levy approved by the Minister of Finance, effective from the beginning of the financial year. The RAF levy rose 12% to 46.5 cents per litre (previous year – 41.5 cents per litre) and accounts for most of the increase in the gross fuel levy revenues. At these levels, the RAF levy represents 5% of the total fuel price at the pump, which has averaged 886 cents per litre in Gauteng during the first 11months of the 2008/09 financial year. The volume of fuel usage in the country seems to lag the overall growth in the gross domestic product (GDP) by a few basis points each year. Diesel and petrol sales, according to statistics released by the Road Traffic Management Corporation (RTMC) and the South African Petroleum Industry Association (SAPIA), is expected rise to 20.7 billion litres (annualized) by year end (previous year – 17.1 billion litres).

Diesel Refund

The refund on diesel provided to certain industrial sectors of the economy is expected to rise by 18.6% during the year to R0.92 billion (previous year – R0.78 billion). The refund, estimated at 9.5% of gross fuel levy income, still represents a major concession on income due to the RAF. The refund has continued to grow steadily over the years. The current RAF levy is 46.5c/l Please refer to the figures below on fuel levy received for the 11 months ended 28 Feb 2009 compared to the 12 months ended 31 March 2008.