Slight fuel price relief for South African drivers — But taxes are going up

South African motorists can expect a small break at the pumps this June, but it comes with a tax sting.

From Wednesday, 4 June, the government will implement an inflation-based increase to the General Fuel Levy (GFL) — adding 16 cents per litre on petrol and 15 cents per litre on diesel. This pushes the total tax burden on petrol up to R6.37 per litre, once all levies are included.

However, despite the tax hike, the latest data from the Central Energy Fund (CEF) points to an overall fuel price drop thanks to over-recoveries in recent weeks. Here’s what drivers can expect:

•Petrol 93: ↓ 4 cents per litre

•Petrol 95: ↓ 3 cents per litre

•Diesel 0.05%: ↓ 33 cents per litre

•Diesel 0.005%: ↓ 34 cents per litre

•Paraffin: ↓ 52 cents per litre

The levy increases follow Finance Minister Enoch Godongwana’s Budget Speech earlier this year, where Treasury opted for fuel tax adjustments instead of the initially proposed 1% VAT increase — a move dropped under political pressure.

Yet, the road ahead isn’t smooth: Treasury still faces a R61.9 billion funding gap over the next three years. According to KPMG’s Frank Blackmore, the 4% increase in the fuel levy may have a more inflationary impact on consumers than the shelved VAT hike would have.

For South African drivers, it’s a mixed bag — a small price dip at the pump, but a reminder that taxes continue to weigh heavily on every litre of fuel.

The post Slight fuel price relief for South African drivers — But taxes are going up appeared first on CAR Magazine.


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