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Treasury slammed for increasing fuel levy

Cape Argus

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May 23, 2025

SOUTH Africans might have escaped the dreaded 1% VAT hike proposed in the original Budget, but fuel taxes are now set to rise from the beginning of June.

- JASON WOOSEY

In his revised 2025 Budget proposal, announced on Wednesday, Finance Minister Enoch Godongwana announced that the General Fuel Levy (GFL) would increase by 16 cents for petrol and 15 cents for diesel.

Although the modest fuel price decrease forecast for June, due to the current price over-recovery, is likely to cancel out the petrol levy increase, the effects of the tax hike will be felt further down the line when international oil prices inevitably rise again.

Following the fuel tax hike, which takes effect in June, the GFL will now total R4.01 per litre for petrol and R3.85 for diesel. The total tax on petrol, once the RAF levy and carbon taxes are factored in, will amount to R6.37 per litre.

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