Money Desk
Treasury Plans Permanent Fuel Levy Overhaul
Finance Minister Enoch Godongwana announced plans to replace fuel levies with alternative revenue sources to lower petrol and diesel prices in South…
Finance Minister Enoch Godongwana confirmed that the National Treasury plans to replace fuel levies with other sources of revenue.
What Motorists Could Save
Combined levies add more than R6,55 to the price of every litre of petrol and diesel sold in South Africa. The amount includes the General Fuel Levy, the Road Accident Fund levy and the Slate levy.
For motorists, the levy component represents more than R6,55 for each litre purchased. Any saving would depend on how the levies are replaced.
Levies and Revenue at Stake
Fuel levy reform would affect revenue streams worth approximately R80 billion to the state and R55 billion to the Road Accident Fund. Those amounts show the scale of revenue that would need to be addressed under any overhaul.
| Levy or revenue stream | Change or amount |
|---|---|
| General Fuel Levy increase since 2008 | 250% |
| Road Accident Fund levy increase since 2008 | 500% |
| Revenue generated for the state | approximately R80 billion |
| Revenue generated for the Road Accident Fund | R55 billion |
Since 2008, the General Fuel Levy has increased by 250%, while the Road Accident Fund levy has risen by 500%. The two increases have added to the levy burden attached to fuel purchases, although they support separate revenue requirements.
President Cyril Ramaphosa said in July 2024 that the government of national unity would review petrol prices to identify potential cost reductions. The promise concerned a review of the price structure rather than a confirmed reduction, and did not set out how revenue generated through the levies would be replaced.
