The Democratic Alliance (DA) has proposed cutting South Africa’s general fuel levy and Road Accident Fund levy by 50%. This aims to ease the burden on motorists facing a looming fuel price hike. DA spokesperson Mark Burke says the move could offer relief amid rising global oil prices from Middle East tensions.
South Africans will soon pay R5 more per litre for petrol and R9 more for diesel starting next month. The DA fuel levy cut proposal targets these increases head-on.
The DA proposal targets two key levies: the general fuel levy and the Road Accident Fund levy. These add R6.35 to the price of every litre of fuel. A 50% cut would lower that by R3.17 per litre, according to Mark Burke.
To cover the revenue gap, the DA suggests using surpluses from other funds. The Compensation Fund’s 2024/25 annual report shows a R21 billion surplus, despite a disclaimed audit opinion. SETAs hold over R6 billion in unused funds.
Here are the key figures:
- Levy contribution: R6.35 per litre
- Proposed relief: R3.17 per litre
- Compensation Fund surplus: R21 billion
- SETAs surplus: R6 billion
Motorists face sharp fuel price hikes from next month. Petrol will rise by R5 per litre. Diesel jumps by R9 per litre. Last month, Finance Minister Enoch Godongwana added 21 cents per litre to the general fuel levy.
Global oil uncertainty drives these changes. Tensions in the Middle East push prices higher. Four years ago, the government froze the fuel levy to handle similar shocks.
The DA says its plan could give at least three months of relief at the pumps. Mark Burke notes the revenue hit but calls the surpluses fair game. “Combined these two levies contribute R6.35 to the overall price of fuel, and consequently a 50% reduction, would dampen increases by R3.17,” he said.
50% cut could save R3.17 per litre
The DA calculates SETAs funds could add one more month of relief. This separates verified surpluses from their estimates.
April’s increases loom large. COSATU has called for scrapping fuel taxes to fight the surge. The DA pushes its idea amid these debates.
No government response appears yet. Burke stresses ways to shield ordinary South Africans and the economy.
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