The Economic Freedom Fighters (EFF) has filed an urgent application at the Western Cape High Court, seeking to suspend the general fuel levy (GFL) increase proposed by Finance Minister Enoch Godongwana.

Presenting his budget

Presenting his budget for the third time in 2025, Godongwana proposed an inflation-linked increase to the GFL, which will see the levy increase by 16 cents per liter for petrol and 15 cents per liter for diesel.

He said the increase would take effect from 4 June 2025.

According to an EWN report, the EFF said the finance minister doesn’t have the power to increase taxes without Parliament’s permission.

While Godongwana has tabled the fiscal framework policy under which the fuel levy falls. The EFF said the framework is currently before the finance standing committee for public hearings.

Public hearings

After the public hearings, the standing committee must produce a final report, which will be presented to Godongwana. After the minister considers the report, he must return it to Parliament for a vote.

The EFF doesn’t believe it will be possible to complete all of this before the GFL increase’s implementation on 4 June.

The increases will push the GFL on petrol from R3.96 to R4.12 per liter, while the GFL on diesel will increase to R3.97 per liter.

The change means around 20% of the money motorists spend refilling their cars with unleaded 95 inland will go towards the GFL.

The adjustment for diesel will mean that the GFL makes up around 21% of the inland price per liter of 50 ppm diesel, based on May 2025’s fuel pricing.

“This budget proposes an inflation-linked increase to the general fuel levy. For the 2025/26 fiscal year, this is the only new tax proposal I am announcing,” said Godongwana.

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

The minister proposed no GFL increase during his two earlier budget speech presentations in February and March 2025, when he proposed VAT hikes.

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An expected increase — Outa

Following Godongwana’s third budget speech attempt, the Organisation Undoing Tax Abuse (OUTA) highlighted that the fuel levy hasn’t been subjected to an increase in the past three years.

In fact, South Africa’s GFL has remained consistent for the past four years, with Godongwana freezing it in 2021, 2022, 2023, and 2024.

The minister even decreased the levy by R1.50, from R3.85 to R2.35 for the first three months of the 2022/23 financial year, and then again by R0.75, from R3.86 to R3.11, in July 2022.

He announced the reductions to provide South African motorists with short-term relief from the high prices they were paying for petrol at the time.

According to Outa

According to Outa, the price of petrol has dropped by 12% since May 2024.

“Treasury’s increase in the general fuel levy by 16 cents per liter (less than 1% of the total fuel price) was expected,” it said in a statement.

“This hike, combined with the increases to excise duties on alcohol and tobacco by between 6.5% and 9%, reflects the government’s increasing reliance on already overburdened taxpayers to close revenue gaps.”

Earlier this year, Outa said any proposals to hike the Road Accident Fund (RAF) levy or GFL would be unjustifiable.

Stefanie Fick, the executive director of Outa’s accountability division, said the levies are easy to collect but prone to misuse.

“The GFL, for example, has never been ring-fenced for transport-related purposes, raising concerns about its allocation,” she said.

“Instead of relying on continuous tax increases to cover inefficiencies, the government must prioritize fiscal responsibility and structural reforms to ensure a more sustainable and prosperous future for all South Africans.”

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