Fuel, RAF levies rise from 1 April

PRESSURE: CARBON TAX ALSO IN REVENUE FIRING LINE >>> Certain tax hikes unavoidable, says minister.

- Tshehla Cornelius Koteli

QUEUED. The fuel levy is a tax charged on every litre of fuel sold, with a portion going to the government and another to the Road Accident Fund to compensate victims of motor vehicle accidents.

(Picture: Gallo Images)

In a move anticipated by many analysts, Finance Minister Enoch Godongwana yesterday announced an increase in the fuel levy.

Delivering the 2026 budget speech in Cape Town, Godongwana said the fuel levy hike would be in line with inflation.

This is the second consecutive fuel levy hike, following three years without increases. The decision is expected to add further pressure on already burdened households.

Before delivering the unwelcome news, Godongwana noted that increases to certain taxes were unavoidable.

Godongwana said the general fuel levy will increase by 9 cents to R4.10 per litre for petrol and 8 cents to R3.93 per litre for diesel. This will take effect on 1 April.

Fuel levy is a tax charged on every litre of fuel sold, with a portion going to the government and another to the Road Accident Fund (RAF) to compensate victims of motor vehicle accidents.