Fuel levy set to rise from June

South Africa’s general fuel levy will increase for the first time since 2022, Finance Minister Enoch Godongwana announced during his budget speech on Wednesday.

The levy will rise by 16 cents per litre for petrol and 15 cents per diesel, effective Wednesday, 4 June.

“This is the only new tax proposal I am announcing for the 2025/26 fiscal year,” Godongwana stated.

Officials from the National Treasury clarified that the increase is inflation-linked and not intended to generate additional revenue.

The adjustment follows the government’s decision to reverse a proposed VAT hike and is expected to raise between R3.5 billion and R4 billion in the current financial year.

The increase coincides with a period of declining global oil prices, which have led to two consecutive fuel price cuts in recent months. These cuts offer some relief to consumers and help ease inflationary pressures.

LookiThesury anticipates further fuel levy increases in 2026 and 2027, aligning with inflation trends.

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