Fuel Levy – After a brief period of fuel price stability, motorists in South Africa may once again feel the pinch at the pump. The government has announced a fresh increase in the fuel levy, combined with adjustments to other indirect fuel taxes, sparking concerns that the current petrol price relief may not last much longer. While the previous drop in international oil prices had provided some temporary relief, these new tax hikes are likely to offset that benefit for everyday drivers. The increase in the General Fuel Levy (GFL) and Road Accident Fund (RAF) levy will be applied nationally, effective from June 15, 2025, according to a recent Treasury notification. This move is expected to impact both petrol and diesel prices, with total pump costs rising depending on the region and fuel grade. The government has defended the increase, citing the need to raise revenue to fund infrastructure maintenance and road safety programs. However, consumer groups argue that this puts additional pressure on households already battling rising living costs. Here’s everything you need to know about the new levy structure, expected petrol prices by province, how much you’ll be paying after combined adjustments, and who qualifies for potential exemptions.
New Fuel Levy Adjustments Effective From June 2025
The latest announcement includes increases in both the General Fuel Levy (GFL) and RAF levy, with the government implementing them in response to revenue shortfalls.
- General Fuel Levy (GFL) increased by 30 cents per litre
- RAF Levy increased by 20 cents per litre
- Total new levy burden is 50 cents per litre
- Changes apply from June 15, 2025
- Applies to both petrol and diesel fuels
- Increase is uniform across all provinces
- Public transport and agricultural sectors may apply for partial rebates
Breakdown of Previous and Revised Fuel Levy Rates
These are the official comparative figures showing what drivers paid before and what they will pay after the increase.
| Levy Type | Previous Rate (R/litre) | New Rate (R/litre) | Difference (R) |
|---|---|---|---|
| General Fuel Levy | 3.94 | 4.24 | +0.30 |
| RAF Levy | 2.18 | 2.38 | +0.20 |
| Total Levy | 6.12 | 6.62 | +0.50 |
| VAT (15%) | Variable | Variable | Unchanged |
| Customs & Excise | 0.04 | 0.04 | Unchanged |
| Carbon Fuel Tax | 0.09 | 0.09 | Unchanged |
Fuel Levy – Updated Petrol and Diesel Prices by Province (June–July 2025)
These prices include the new levies and reflect the expected pump rates in major provinces.
- Prices are based on inland and coastal averages
- Diesel prices also see an increase due to tax adjustments
Fuel Levy – Petrol Prices Post Levy Adjustment
After the latest fuel levy hike, petrol prices across South Africa have increased significantly. The revised rates now include an additional 50 cents per litre, impacting both inland and coastal regions. Motorists should prepare for higher monthly fuel expenses, with prices now varying slightly by province and fuel grade after adjustment.
| Province | Petrol 93 (R/litre) | Petrol 95 (R/litre) | Diesel 50ppm (R/litre) |
|---|---|---|---|
| Gauteng | 23.60 | 24.05 | 22.90 |
| KwaZulu-Natal | 23.00 | 23.40 | 22.30 |
| Western Cape | 22.95 | 23.35 | 22.25 |
| Eastern Cape | 23.05 | 23.45 | 22.35 |
| Free State | 23.50 | 23.95 | 22.85 |
| Limpopo | 23.65 | 24.10 | 22.95 |
| Mpumalanga | 23.60 | 24.05 | 22.90 |
| North West | 23.55 | 24.00 | 22.85 |
Fuel Levy – What Does This Mean for Drivers?
With the new levy structure, most drivers will see an increase of approximately R25 to R30 per full tank, depending on the vehicle size and fuel type.
- Smaller hatchbacks (35L tank) will cost ~R17.50 more per tank
- Sedans (45L tank) will cost ~R22.50 more
- SUVs/Bakkies (65L tank) will cost ~R32.50 more
- Public transport fares may increase in response
- Fuel price inflation could affect food and goods transportation
How Fuel Price Changes Affect Monthly Budgets
Fuel price changes significantly affect monthly budgets, especially for regular commuters and transport-dependent workers. Even a small per-litre hike can add hundreds of rands to fuel expenses over the month. This impacts not only individual households but also raises the cost of goods and services across the entire economy.
| Vehicle Type | Avg. Monthly Fuel Use | Extra Monthly Cost (R) |
|---|---|---|
| Small Car | 120L | +R60 |
| Mid-Size Sedan | 160L | +R80 |
| SUV/Bakkie | 200L | +R100 |
| Minibus Taxi | 450L | +R225 |
| Delivery Van | 600L | +R300 |
Why Is the Government Increasing the Fuel Levy Again?
The National Treasury explained that the fuel levy hike was necessary to close funding gaps in national infrastructure projects and accident compensation through the RAF.
- Revenue collection shortfalls due to low economic growth
- Increased claims burden on the Road Accident Fund
- Repairs needed for deteriorating roads and logistics networks
- Government aims to raise R10.2 billion through this increase in 2025
- Alternatives like tolls were rejected in favor of universal levies
Public and Industry Reaction to the New Fuel Hike
Stakeholders have expressed mixed reactions. Motorists are frustrated, while some economists argue the government had few alternatives.
- Automobile Association (AA) called the increase “unjustified”
- COSATU warned of inflationary impact on low-income families
- Transport sector anticipates fare hikes of 3–5%
- Economists point out the long-term sustainability issues in the RAF
Will Any Groups Be Exempt or Reimbursed?
The government has outlined specific exemptions or rebate mechanisms for fuel-intensive sectors.
- Public buses under registered municipal transport services
- Agricultural tractors and machinery (upon fuel refund application)
- Aviation and maritime fuel not impacted by retail price
- Miners and manufacturers using bulk fuel storage with documentation
- Certain government departments may receive refunds via Treasury protocols
How to Apply for Fuel Levy Refunds
Eligible entities must register with the South African Revenue Service (SARS) and provide the following:
- VAT registration
- Fuel usage logs or declarations
- Vehicle/equipment registration proof
- Application via www.sars.gov.za under Fuel Refunds Portal
Other Expected Impacts from the Fuel Price Rise
A rise in fuel costs triggers a ripple effect across the economy, especially for those relying on road transport and logistics.
- Food transportation costs expected to rise
- Urban-rural supply chains will see cost shifts
- Long-distance commuters may reconsider private travel
- Increase in demand for ride-sharing and public transport options
- Potential boost to hybrid and electric vehicle markets in 2025
Policy Alternatives Being Discussed for 2026
The government is also exploring ways to reduce dependency on volatile fuel levies.
- Potential reintroduction of distance-based tolling systems
- Carbon credits for businesses that switch to low-emission transport
- Subsidies for electric vehicle purchases
- Provincial fuel pricing caps under discussion for remote areas
The increased levies will likely remain a contentious issue through the rest of 2025. While the government argues they are essential for funding critical programs, South African drivers are left grappling with higher prices at the pump. For now, staying informed and planning travel smartly remains the best way to manage the impact.
Public Sector Contact Information
For more information on fuel levy refunds, policy queries, or price disputes, citizens can contact:
- Department of Mineral Resources and Energy (DMRE)
Hotline: 0860 111 627
Website: www.energy.gov.za - National Treasury
Revenue & Tax Policy: 0800 701 701
Email: [email protected] - SARS Fuel Refunds Division
Helpline: 0800 00 7277
Refund Portal: www.sars.gov.za/fuel-refunds
FAQs of Fuel Price Hike
Q1: When will the new fuel levies take effect?
A1: From June 15, 2025, nationwide.
Q2: How much more will I pay for petrol per litre?
A2: Around 50 cents more due to the combined GFL and RAF increases.
Q3: Are public transport operators eligible for exemptions?
A3: Yes, municipal bus services can apply for rebates via SARS.
Q4: Does this impact LPG, paraffin, or aviation fuel?
A4: No, the new levies apply only to petrol and diesel sold at retail.
Q5: Can I do anything to reduce my monthly fuel bill?
A5: You can reduce non-essential trips, consider ride-sharing, or switch to more fuel-efficient transport.