Rate changes and the fuel sector

Other important changes are:

• Effective from 1 January 2024, the carbon tax cost recovery quantum for the liquid fuels sector increased from 0,66c/litre to 0.69c/litre. This is an important amendment given the challenges faced by this sector.
• The Budget states that to ensure alignment between the Carbon Tax Act and the Department of Forestry, Fisheries and the Environment’s (DFFE) Methodological Guidelines for Quantification of Greenhouse Gas Emissions, changes to the CO2 emission factors and net calorific values for the relevant fuel types are necessary. The Budget thus proposes that Schedule 1 fuel combustion emissions factors and new fuel types be added. In this regard, it is the stationary and non-stationary emission factors in Schedule 1 that are amended for several fuel types, including aviation gasoline, diesel, heavy fuel oil, jet kerosene, liquified petroleum gas, paraffin and petrol. Some of the new fuel types to be added are acetylene, refuse-derived fuel, sawdust, waste tyres and methane rich gas. From this, it appears that as the DFFE and SARS collect data regarding emissions and gain a deeper understanding of the emissions that affect South Africa’s greenhouse gas emissions, they are gradually increasing the carbon tax base.
• Furthermore, to align with the guidelines, it is proposed that the density factors for the calculation of the carbon fuel levy be changed from 0,75 to 0,7405kg/litre for petrol and from 0,845 to 0,8255kg/litre for diesel.