Both the Road Freight Association and the Automobile Association have expressed concern that the looming fuel levy hike will hit consumers hard, as the transporters of goods will need to pass on the additional cost.

The Minister of Finance Enoch Godongwana announced that the fuel levy on petrol would increase by 16 cents per litre and 15 cents per litre on diesel from 4 June 2025.

It’s the first time in three years that the fuel levy has been increased, and comes on the back of the VAT hike being scrapped, leaving the Treasury scrambling to find ways to raise additional revenue.

The increase in the fuel levy will result in an additional R4 billion in state coffers this year.

The Road Freight Association says this will be directly felt by consumers, as transporters cannot absorb increases without detrimental effects on their bottom-line.

The RFA’s CEO Gavin Kelly says this underscores that Treasury would rather tax citizens than cut the wasteful expenditure that has brought the country to where it is.

“Transport will become more expensive, consumers will pay more, and the old adage that government can keep increasing taxes and levies to fund its uncontrolled spending remains true. Government does not have money – it belongs to the taxpayers, and the time for accountability and responsibility has come.”

The cost of logistics, 85% of which runs by road freight, will become more expensive from 4 June.

“The consumer will pay more, transport through South Africa will become more expensive, global supply chains will re-evaluate their routes and you and I will dig deeper into our pockets for goods and services and transport to work whilst the government has “found” a way to fund its salary and wage increases, as well as all the other vanity programmes it constantly runs.”

The Automobile Association has also warned that this increase will have immediate and far-reaching consequences for consumers and the economy.

The AA’s Eleanor Mavimbela says this levy adjustment comes at a time when South Africans are already contending with high food prices, elevated interest rates, increased electricity tariffs and persistently high unemployment.

“Fuel is a critical input cost across all sectors of the economy; any increase inevitably drives up transport and operational costs, further intensifying inflation. Lower-income households, which spend a greater share of their income on transport, will be disproportionately affected by this rise.”

Mavimbela says the AA has now renewed its call for a comprehensive and transparent review of South Africa’s fuel pricing model.

This should include:

• A forensic audit of revenue generated from the General Fuel levy and the Road Accident levy, including its allocation and expenditure;
• Full transparency on the fuel price-setting formula published by the Department of Mineral Resources and Energy (DMRE);
• Engagement with civil society, labour, and the transport sector to identify fair and sustainable revenue models;
• Exploration of alternative funding mechanisms that reduce reliance on fuel-based taxation.