Finance Minister Enoch Godongwana has announced the first increase in the general fuel levy in three years, with motorists set to pay an extra 16 cents per litre of petrol and 15 cents per litre of diesel.
The announcement was made during Godongwana’s tabling of the third Budget in Parliament on Wednesday. He cautioned that while the hike is necessary, it would still fall short of closing the country’s medium-term fiscal gap.
The Automobile Association (AA) has raised concerns over the impact of the fuel levy increase on already stretched consumers. Spokesperson Eleanor Mavimbela acknowledged government’s financial constraints but warned the rise would further burden South Africans, who are already grappling with rising living costs.
“Consumers are under immense pressure from high food prices, elevated interest rates, increased electricity tariffs, and persistent unemployment,” said Mavimbela. “Fuel is a fundamental input cost across all sectors. Any increase pushes up transport and operational expenses, which in turn drives inflation.”
She added that lower-income households, which spend a larger portion of their earnings on transport, will be hardest hit.
Mavimbela also called for greater transparency in how fuel levy revenues are used, urging the government to engage meaningfully with stakeholders.
“We’re ready to work with government to find sustainable, transparent, and fair solutions that can foster economic growth while easing the pressure on everyday South Africans,” she said.