June fuel levy price shock incoming – Here's why you'll be paying more
Get ready to dig deeper into your pockets. Motorists will feel the pinch at the pumps as the government ends its three-year freeze on the fuel levy, a move aimed at helping plug the country's growing budget deficit.
In the latest iteration of his 2025 budget speech on Wednesday, Godongwana announced the general fuel levy (GFL) would be increased 16c/l for petrol and 15c for diesel when the next monthly fuel price adjustment is made on June 4.
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It's one way Godongwana plans to fund the budget shortfall this financial year.
He's also warning that further tax proposals are in the pipeline for 2026.
As from next month, the general fuel levy on petrol will increase by 16 cents to R4.01 per litre.
The levy on diesel will go up by 15 cents to R3.85 per litre.
'For the 2025/26 fiscal year, this is the only new tax proposal that I'm announcing. This is the first fuel levy increase in three years. Cut and join with the next line. Unfortunately, this tax measure alone will not close the fiscal gap over the medium term.'
Meanwhile, the Automobile Association (AA) has slammed a new fuel levy hike, warning that the move will drive up transport costs, push food prices higher, and place more pressure on already struggling households.
'This levy adjustment comes at a time when South Africans are already contending with high food prices, elevated interest rates, increased electricity tariffs and persistently high unemployment.
'Fuel is a critical input cost across all sectors of the economy; any increase inevitably drives up transport and operational costs, further intensifying inflation.'
It furthermore said the total tax taken from fuel, including the Road Accident Fund (RAF) levy, would now exceed R6 per litre in some areas, making up over 30% of the pump price before the actual fuel cost is even factored in.
The AA calls for a forensic audit into how these funds are spent.
It calls for a transparent overhaul of South Africa's fuel pricing system, including a forensic audit of fuel levy revenues, full disclosure of the pricing formula, stakeholder engagement, and exploration of alternative, less fuel-dependent funding models.
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