Latest news with #GeneralFuelLevy
The South African
2 days ago
- Automotive
- The South African
THIS is where SA's General Fuel Levy money goes to
South Africa's General Fuel Levy increased in 2025 after proposed VAT increases were overturned in the National Assembly. So, how much does the General Fuel Levy bring in exactly, and where does the money end up? Every time you fill your car, 16c per litre for petrol and 15c per litre for diesel goes to the government. The General Fuel Levy did not increase in more than three years, until 2025. And earlier this month, the National Treasury gazetted the division of its General Fuel Levy funds … Motorists queue at a filling station ahead of a fuel price hike. Image: Waldo Swiegers/Bloomberg via Getty Images As such, South Africa's General Fuel Levy is estimated to bring in R17 billion to government's tax coffers over the coming financial year. And the National Treasury is allocating funds across eight major metros like so, reports TopAuto : 1. City of Johannesburg – R4 572 million 2. eThekwini – R3 875 million 3. City of Cape Town – R2 851 million 4. Ekurhuleni – R1 795 million 5. City of Tshwane – R1 666 million 6. Nelson Mandela Bay – R862 million 7. Buffalo City – R798 million 8. Manguang – R427 million Total – R16 849 million However, while the National Treasury decides where GFL funds are allocated, it is at the metros' discretion how the monies are spent. The Automobile Association (AA) says government needs to rethink its income generation policies that are putting undue stress on motorists. Image: File Petrol currently retails at an average of R21.00 per litre (July 2025). However, motorists pay R4 per litre of petrol and R3.85 per litre of diesel sold in South Africa towards the General Fuel Levy. Following 2025's adjustments, taxes and levies now make up 30% of what you pay at the pumps. Otherwise a litre of fuel would cost closer to R16. Therefore, the Automobile Association (AA) is outspoken about government over-reliance on taxing motorists. 'Although the 2025 increase may appear modest in isolation, it forms part of a worrying broader trend. Motorists are bearing the brunt of fiscal policy changes. South Africa should have a broader conversation about funding infrastructure, road safety, and public transport. None of these should unduly burden its citizens,' concludes the AA. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The South African
12-06-2025
- Automotive
- The South African
3 pieces of GOOD news for the South African taxi industry
There have been three major developments in the South African taxi industry in recent weeks. Firstly, government announced it will scrap nearly 2 000 illegal/unroadworthy minibus taxis. Likewise, there is a directive to convert approximately 400 vehicles to alternative fuels, too. This progress in the South African taxi industry is all part of a 'Taxi Recapitalisation Plan' that was presented in parliament last month (Tuesday 20 May 2025). As such, government's broader mandate is to finally modernise the industry through various projects. In time, these vital industry reforms will translate into savings for the end user. Image: File Like them or loathe them, the South African taxi industry is the lifeblood of the country's economy. More than two thirds (66%) of the nation relies on public transport to get to and from work each day. As such, another piece of good news is that the South African National Taxi Council (SANTACO) won't raise fares this month. When the Minister of Finance Enoch Godongwana hiked the General Fuel Levy (GFL) for the first time in three years, it was widely anticipated that taxi fares would increase in June 2025. This would add yet more financial pressure to the country's poor. Effective from this month, the GFL increased by 16c per litre and 15c per litre for petrol and diesel respectively. As a result, the total cost of GFL is R4.01 per litre for petrol and R3.85 per litre for diesel. That taxi fares are unmoved is a remarkable turn of events when you remember that the Carbon Levy increased by 3c per litre back in April, too. We're not there yet, but cleaner, greener and safer, is what the future of the South African taxi industry is all about. Image: File Furthermore, new Liquid Petroleum Gas (LPG) conversions will lower the cost of fuel for taxis by as much 35%, reports BusinessTech . The department says LPG is the most viable alternative fuel because of the ease of conversion for minibus taxis. Better still, LPG runs cleaner, providing a longer engine lifespan and less maintenance. The option of dual systems is also viable for long-range commutes. At last count, the department says only seven taxis have converted as part of the LPG pilot project. It hopes to install 400 conversion kits. Finally, stakeholders in the South African taxi industry are once again encouraged to take advantage of the Taxi Recapitalisation Projects (TRP). Government says voluntarily surrendered unroadworthy minibus taxis will be scrapped free of charge. And owners/operators will gain access to an allowance which they can recapitalise on a new taxi. The department believes there are as many as 2 350 illegal/unroadworthy taxis still operating in South Africa. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
04-06-2025
- Business
- IOL News
EFF's challenge to fuel levy hike dismissed
EFF National chairperson Noluthando Molutshungu and Convernor of deployees to the Western Cape Rebecca Mohlala at the Western Cape High court on Tuesday to challenge the fuel levy increase. Image: Ian Landsberg The Western Cape High Court has dismissed the EFF's urgent application to interdict the 4% fuel levy increase, which takes effect on Wednesday. The EFF had filed the urgent court case, challenging Finance Minister Enoch Godongwana's decision to increase the General Fuel Levy. The levy increased by 16c per litre on petrol and 15c per litre on diesel. The EFF through Advocate Mfesane Ka-Siboto had argued that the increase would unfairly burden the working class and poor, worsening inequality and violating constitutional rights. He said the minister's decision lacked both rationality and parliamentary oversight. Ka-Siboto further told the court, in accordance with the Money Bills Amendment Procedure and Related Matters Act, only a law could serve as the proper instrument for the minister to impose a tax. The EFF claimed that Godongwana overstepped his powers by announcing the fuel levy increase in his Budget speech, without parliamentary approval. "What is clear is that the minister is imposing tax," Ka-Siboto said, citing the Money Bills Amendment Procedure and Related Matters Act as the legal framework Godongwana should have followed. The EFF also argued that the fuel levy increase is both economically unjust and unconstitutional. "It deepens inequality and undermines access to essential goods and services. We are committed to fighting the fuel levy increase in court and in parliament," the party said. However, Advocate Kameel Premhid, representing the national Treasury, argued that the fuel levy increase is not a tax but rather a regulation charge. Premhid maintained that the minister has always had the power to adjust fuel levies as part of the budgetary process. "Regulatory charges bring in money, so they might raise revenue. But that doesn't make it a tax, and just because a tax also raises revenue, the two are not the same thing." The Western Cape High Court's dismissal of the EFF's bid means the fuel levy increase will go ahead as planned. The EFF may still pursue its challenge to the fuel levy increase in Part B of its application, which seeks to review and set aside Godongwana's decision. Meanwhile the Department of Minerals and Energy has confirmed that fuel prices will decrease from today, despite the hike in the General Fuel Levy. Providing reasons for the fuel adjustments, the department said the average Brent Crude oil price decreased from 66.40 US Dollars (USD) to 63.95 USD under the period under review while the Rand appreciated on average, against the US Dollar (from 18.84 to 18.11 Rand per USD) . Based on current local and international factors, the fuel prices have been adjusted as follows: - Petrol 93 and 95 (ULP & LRP) is down by 5c per litre - Diesel (0.05% sulphur and 0.005% sulphur) has dropped by 36c per litre - Illuminating Paraffin (wholesale) is down by 56c per litre | Additional Reporting Staff Reporter Cape Times
The Citizen
03-06-2025
- Business
- The Citizen
Here is the official fuel price for June
Here is the official fuel price for June Despite a stronger rand and favourable oil price movements in May, South African motorists will see only a slight drop in fuel prices this June as a new fuel levy hike eats into potential savings at the pump. The Department of Mineral Resources and Energy confirmed on Tuesday that the official fuel price adjustments will come into effect on Wednesday, June 4, 2025. While consistent over-recoveries throughout May pointed to a more significant decrease, the levy increase announced in the latest national budget has narrowed the benefit by around 15 cents per litre. As a result, 93 and 95 petrol prices will drop slightly by 5 cents per litre, while diesel will see a larger decrease of 37 cents per litre. Here is the June fuel prices: Fuel Change Petrol 93 decrease of 5 cents per litre Petrol 95 decrease of 5 cents per litre Diesel 0.05% (wholesale) decrease of 37 cents per litre Diesel 0.005% (wholesale) decrease of 37 cents per litre Illuminating Paraffin (Wholesale) decrease of 56 cents per litre LPGAS decrease of 89 cents per kg Meanwhile, motorists remain on edge as the final fuel prices hinge on a court ruling following an urgent application by the Economic Freedom Fighters (EFF) to suspend the recent fuel levy increase. The 2025 levy increase will see the total tax on petrol rising to R6.37, including the R2.18 Road Accident Fund levy. Finance Minister Enoch Godongwana raised the General Fuel Levy, and announced various government expenditure cuts, in his third Budget Speech that was proposed on May 21. Also read: Is there an outbreak of Staphylococcus in Pretoria? Do you have more information about the story? Please send us an email to bennittb@ or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
02-06-2025
- Automotive
- IOL News
What to expect for petrol and diesel prices from June 04
Petrol and diesel prices are likely to decrease marginally in June. Fuel taxes are set to increase for the first time in three years, but thankfully a stronger rand will shield South African motorists from fuel price hikes in June. The next fuel price adjustment will take place on Wednesday, June 04, and unaudited month-end data from the Central Energy Fund shows that minor price decreases are likely for both petrol and diesel. Petrol was looking set for a decrease of around 20 cents per litre, but with the 16 cent hike in the General Fuel Levy (GFL) set to take effect from Wednesday, a reduction of about four cents is on the cards. 93 Unleaded petrol currently costs R21.29 for a litre in Gauteng, with 95 ULP retailing at R21.40 inland and R20.60 at the coast.
