Johannesburg — After a three-year freeze, South Africa’s general fuel levy will increase, hitting motorists with higher costs at the pump starting Wednesday, June 4, 2025. Finance Minister Enoch Godongwana confirmed the hike during the tabling of the revised Budget 3.0 speech.
“This is the only new tax proposal I am announcing for the 2025/26 fiscal year,” Godongwana stated.
The levy will rise by 16 cents per litre for petrol and 15 cents per litre for diesel, bringing the general fuel levy to:
- R4.01/litre for petrol
- R3.85/litre for diesel
This follows the government’s decision to reverse its earlier VAT hike proposal, creating a R75 billion revenue gap that must now be partially offset through this increase.
Read the revised full speech here.
Record-high fuel taxes for South African drivers
When added to other fixed charges, this brings the total fuel tax burden to its highest level ever in rand terms:
- Road Accident Fund levy: R2.18/litre (unchanged)
- Carbon fuel tax: 3 cents/litre increase (as in past budgets)
Total combined fuel taxes:
- R6.37/litre for petrol — about 30% of the pump price
- R6.24/litre for diesel — about 33% of the pump price
Despite assurances that the hike is inflation-linked and “not intended to generate additional revenue,” the move is expected to raise between R3.5 billion and R4 billion in the current financial year.
Hike reverses months of relief
The levy hike arrives unexpectedly after back-to-back fuel price cuts. In May, petrol dropped by 22 cents while April brought Easter relief.
Analysts had forecast another decrease in June amid falling global oil prices. The tax increase now upends those predictions.
More hikes ahead
National Treasury has indicated that further inflation-based fuel levy increases can be expected in 2026 and 2027, reinforcing a long-term upward trend in fuel-related taxes.
For more fuel price updates and economic news, visit NOWinSA — Stories Shaping South Africa Today.
 & 15c (diesel) from June 4. A NOWinSA breakdown. Stories Shaping South Africa Today.){kind=link}