The Economic Freedom Fighters (EFF) are heading to the Western Cape High Court today in an urgent bid to halt the government's planned fuel levy increase—but civil watchdog OUTA believes the legal challenge lacks merit.
At the centre of the dispute is Finance Minister Enoch Godongwana’s announcement last month during the 2025 Budget Speech, in which he outlined a 16 cents per litre increase for petrol and 15 cents per litre for diesel under the general fuel levy. The adjustment is scheduled to take effect on Wednesday, June 5.
However, Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse (OUTA), says while they do not endorse higher fuel levies, the EFF’s legal case appears shaky.
“I don’t think the EFF’s case is a strong one. That’s not to say we support the increase—but the Minister of Finance is well within his rights to implement the fuel levy as a fiscal tool,” Duvenage said.
He noted that Minister Godongwana had refrained from raising the levy in recent years, and argued that a modest hike now may be more palatable than other revenue-generating alternatives.
“Going up by 16 cents is, in our view, the lesser of two evils compared to something like a VAT increase,” he added.
In a related development, the Department of Mineral Resources and Energy is expected to announce its latest fuel price adjustments later tonight. Preliminary figures from the Central Energy Fund indicate some relief at the pumps: petrol could drop by 19 cents per litre, while diesel may decrease by as much as 50 cents.
The outcome of the EFF’s court challenge—and whether it will delay or derail the levy hike—remains to be seen.