By: Buhle Mbhele
Finance Minister Enoch Godongwana has announced a proposed increase in the fuel levy as part of the government’s fiscal framework for the 2025/26 financial year.
Delivering his budget speech in Parliament in Cape Town today, Godongwana outlined that, effective from 4 June, the fuel levy on petrol will increase by 16 cents per litre, while the levy on diesel will rise by 15 cents per litre.
The Minister defended the proposal by noting that this would be the first adjustment to the fuel levy in three years. He argued that the increase was necessary to help support the country’s revenue needs in the face of rising fiscal pressures.
However, Godongwana acknowledged that this measure alone would not be sufficient to address South Africa’s medium-term fiscal gap.
He emphasised that broader structural reforms and improved revenue collection would be required to ensure long-term fiscal sustainability.
The announcement comes at a time when South Africans are already grappling with high fuel prices, persistent load shedding, and sluggish economic growth.
The proposed hike is expected to draw mixed reactions from consumers and businesses alike, particularly those in the transport and logistics sectors.
The fuel levy is one of the government’s most reliable sources of revenue, contributing billions of rand annually to the national budget. While traditionally used to fund road infrastructure and maintenance, a significant portion is also allocated to general budgetary needs.
Further details on how the additional revenue will be allocated are expected to be released in the full budget documentation later today.
