The Democratic Alliance (DA) says it is only logical for the Minister of Finance to extend the fuel levy relief in order to shield South Africans from rising fuel prices and broader economic pressure.

The party argues that without the relief, consumers will feel the combined impact of high fuel costs, inflation, elevated interest rates, and weak economic growth.

DA spokesperson on Finance, Dr Mark Burke MP, says the temporary measure was originally introduced to cushion households and businesses from surging global oil prices, largely driven by ongoing conflict in the Middle East.

According to the DA, failure to extend the relief would result in fuel price increases of significantly higher magnitude than currently being experienced.

The party estimates that petrol could rise by R4.28 per litre and diesel by R6.41 per litre, instead of smaller increases of R1.28 and R3.41 respectively.

The DA warns that such increases would also push up inflation, place further pressure on interest rates, and slow down economic growth.

“While the DA supports another month’s fuel levy relief, we will not support future tax or debt increases to pay for this relief,” Burke stressed.

Dr Burke further argues that government should instead reallocate funds from what he describes as inefficient or underperforming state entities. He pointed specifically to the Compensation Fund, saying it and similar institutions accumulate surplus funds annually while still receiving poor audit outcomes.

He claims these surpluses could be redirected to fund fuel relief without requiring legal changes but rather through tighter control over exemptions and spending decisions.

“Furthermore, National Treasury can likely save billions if it extends its ghost worker audit to municipalities and state entities and gives its spending review program teeth.”

Government is expected to provide clarity on the future of the fuel levy relief this week as pressure mounts on households facing ongoing cost-of-living increases.