Back over THE R8 MARK

AT midnight tonight fuel tax jumps by 17,5c or 11,7percent to 167,5c a litre - and the road accident fund levy by 8c or 12,5percent to 72c a litre.

AT midnight tonight fuel tax jumps by 17,5c or 11,7percent to 167,5c a litre - and the road accident fund levy by 8c or 12,5percent to 72c a litre.

Along with higher oil prices, this takes the 93 octane commonly used inland up 49c to R8,40 a litre and 95 octane at the coast up 48c to R8,35c a litre.

High-octane petrol is cheaper at the coast than low octane inland due to an additional 14c "zone differential in Gauteng" tax inland drivers pay.

But the 17,5c a litre fuel tax increase includes a 7,5c a litre contribution to funding Transnet's new multi-product pipeline project between Durban and Gauteng that all motorists will have to pay.

At April's petrol price, the fuel tax accounts for nearly 20percent of the petrol price. The road accident fund's slice is 8,6percent. Other taxes include a 4c a litre customs and excise duty, a 0,15c a litre petroleum products levy and a 3c a litre "incremental inland transport levy".

Gauteng motorists who tank up with the higher 95 octane (which is unnecessary for most cars, which run fine on 93 octane inland) pay an additional 10c a litre demand side management levy.

The petrol price is set once a month by government, taking effect on the first Wednesday. Petrol back over R8 a litre for the first time since 2008's oil spike is probably the start of an upward trend.

Reuters reports that data on Friday showed US employers created jobs in March at the fastest rate in three years. US manufacturing is also expanding at its fastest pace for more than five years, Chinese manufacturing is picking up and Japanese business sentiment is also improving.

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