Relief to Fuel Prices for now but the tax Hike is a Concern | South African News
—namely, a growing tax burden and calls for structural reform from the Automobile Association (AA) and economic analysts.
From 4 June 2025, fuel prices will see a welcome decrease:
The drop is primarily due to favorable exchange rates and a stable global oil price, with Brent crude hovering near $66 per barrel.
Despite the lower prices, Finance Minister Enoch Godongwana announced a fuel tax increase—the first in three years. The will rise by 16 cents per litre for petrol and 15 cents for diesel. Including the Road Accident Fund (RAF) levy and carbon tax, total fuel taxation now exceeds , making up over .
As BusinessTech notes, these increases come with little evidence of improved road infrastructure or accountability in spending, raising concerns about the sustainability of this fiscal approach (source).
The AA has issued a strong response to the levy hike, acknowledging fiscal pressures but warning of the on both consumers and the economy. They highlighted that:
In a formal statement, the AA renewed its call for , proposing:
The June fuel price cuts will provide short-term relief, but the mounting fuel tax burden and lack of pricing transparency highlight a system under strain. With household costs climbing across the board, calls for a more equitable and transparent fuel pricing model are no longer just advisable—they’re essential.