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Economy

SA increases fuel levy for first time in three years

Date: May 21, 2025

South Africa's (SA) Finance Minister Enoch Godongwana has proposed a revised National Budget that abandons the Value-Added Tax hike and introduces new tax proposals generating R18 billion in additional revenue in 2025/26, and $1.06 billion in 2026/27

While presenting Budget 3.0 on Wednesday, Godongwana told Parliament that he would be increasing the fuel levy for the first time in three years.

“This tax measure alone will not close the fiscal gap over the medium term,” he said

“From the 4th of June this year, the general fuel levy will increase by 16 cents per litre for petrol, and by 15 cents per litre for diesel.”

Godongwana said additional tax proposals for 2026/27 will need to generate $1.11 billion, unless the SA Revenue Services is able to collect additional revenue to plug the revenue gap.

This move comes amid the scrapped VAT rate increase proposed in Budget 2.0 in March 2025, which would have raised $1.56 billion in 2025/26 and $810 million in 2026/27.

--SABC--