12-08-2025
- 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.
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