DA calls for a slash of fuel levy by 50% for immediate relief

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The Democratic Alliance has called for an urgent 50% reduction in fuel levies, warning that South African households are facing severe financial strain as fuel prices surge.

 

During a media briefing on Wednesday, DA Finance Spokesperson Dr Mark Burke said many minimum wage earners already spend up to a third of their income on transport, and further increases would have a ripple effect on the broader economy.

 

The party is proposing that both the Road Accident Fund (RAF) levy and the General Fuel Levy be halved for the duration of the current oil price shock.

 

Together, the levies make up about R6.35 per litre of fuel, meaning a 50% cut could reduce the price by roughly R3.17 per litre.

 

This comes as petrol prices are expected to rise by more than R5 per litre, while diesel could increase by over R9 per litre in the coming week.

 

While acknowledging the move would cost the fiscus around R6.5 billion per month, the DA argues that failing to act would have a greater economic impact, including higher inflation, reduced growth and increased pressure on household budgets.

 

To offset the loss in revenue, the party has suggested several funding options, including drawing on surpluses from the Compensation Fund and Sector Education and Training Authorities (SETAs), strengthening government spending reviews, and expanding audits to root out so-called “ghost workers” across municipalities and state entities.

 

Burke said some of these measures could result in long-term savings, even beyond the temporary fuel levy relief.

 

He has also confirmed that he will formally write to the President and the Minister of Finance, urging immediate intervention.

 

The DA says urgent action is needed to shield consumers from global oil price shocks, arguing that the government must prioritise cutting wasteful expenditure over placing additional pressure on taxpayers.

 

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