Fuel levies are set to go up by 21 cents from April.
Image: Doctor Ngcobo / Independent Media.
Fuel prices are at their lowest in four years following February’s petrol and diesel price decreases; however, South Africans remain vulnerable to international oil price shocks.
Late-month data from the Central Energy Fund is already pointing towards a petrol price increase of around 15 cents in March, while diesel is looking set to rise by about 60 cents.
April is set to see further increases, given that the 2026 Budget Speech, delivered by Finance Minister Enoch Godongwana on Wednesday, signalled increases to the General Fuel Levy (GFL) as well as the Road Accident Fund Levy (RAF).
To that end, GFL will increase by 9 cents per litre for petrol and 8 c/l for diesel, while the carbon fuel levy goes up by 5 cents and 6 cents respectively, and the RAF sees a hike of 7 cents. All together, motorists are looking at a 21-cent increase for both fuel types.
Bobby Ramagwede, CEO of the Automobile Association, said the blanket inflationary adjustment to these levies will apply further pressure to already embattled consumers.
“The Minister had an opportunity to provide much-needed relief to consumers in an effort to promote economic activity by making mobility more affordable.
“Whilst the inflationary adjustment to taxes may be justified, the prevailing inefficiencies of RAF won’t be remedied by ‘throwing more money’ at the problem.”
However, Ramagwede did express hope that the additional funds directed at the policing and infrastructure could result in more effective law enforcement on South Africa’s roads.
“The poor condition of municipal roads is a material contributor to the road safety challenges we face. The proposed allocation may not be sufficient to address the critical state of our road network,” he added.
The Organisation Undoing Tax Abuse (OUTA) said it is particularly concerned about the continued increase in the RAF levy.
“The annual fuel levy for the RAF contributes over R45 billion per annum, which falls well below the long-term provisions for the fund at R387.4bn, and is expected to increase to R426.2bn by 2028/29,” said OUTA CEO Wayne Duvenage. “Increasing the levy by a further R1.5 bn per annum, without fixing the structural failures of the RAF, simply shifts the burden to motorists while liabilities continue to grow,” he added.
“South Africans are paying more into a system that remains fundamentally broken.”
Following the tax increases, which are set to come into effect on April 1, motorists will be paying R2.25 per litre towards the RAF, while the GFL levy will increase to R4.10 for petrol.
IOL Motoring