15-07-2025
South African metros share R17 billion in fuel levy revenue amid legal challenges
The biggest municipalities in the country have shared almost R17 billion in general fuel levy revenue in 2024/25.
Image: Tumi Pakkies / Independent Newspapers
The country's eight metropolitan municipalities have shared nearly R17 billion in general fuel levy revenue while the increase announced by Finance Minister Enoch Godongwana is still subject to legal action by the EFF.
The City of Johannesburg received the lion's share of the allocation with just under R4.6bn, eThekwini got about R3.9bn, and Cape Town was allocated R2.85bn in 2024/25, according to a notice published by Godongwana last week.
Ekurhuleni's share is almost R1.8bn and the City of Tshwane received about R1.67bn.
Nelson Mandela Bay and Buffalo City in the Eastern Cape were allocated R862 million and R798m, respectively, while Mangaung got R427.5m.
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In terms of the Taxation Laws Amendment Act, an amount equal to a fixed percentage of revenue raised from the collection of the general fuel levy goes to metropolitan municipalities.
The Act states that the allocation to which metropolitan municipalities are entitled is fixed at 23%.
Godongwana may annually revise the percentage and must publish the revised percentage by notice in the government gazette.
Additionally, he must, for each financial year, determine an equitable allocation to be made to each metropolitan municipality.
During the Budget speech in May, Godongwana announced an inflation-linked increase to the general fuel levy over a period of three years.
As a result, last month the fuel levy increased by 16 cents per litre for petrol and 15 cents per litre for diesel.
The increase sparked widespread opposition, with the EFF unsuccessfully approaching the Western Cape High Court to suspend Godongwana's increase in the general fuel levy and interdicting the minister from giving effect to the impugned decision pending the finalisation of part B of its application.
In part B, the EFF wants the high court to review and set aside the increase of the general fuel levy.
The fuel levy was initially set aside for road maintenance and infrastructure upgrades, and there have been calls for it to be ring-fenced for allocation to the SA National Roads Agency Limited.
EFF treasurer-general Omphile Maotwe did not respond to questions on when part B of the party's application would be heard by the high court.
