2025 Budget Speech Brings No Increase To Fuel Levy, But Carbon Tax Raised

For the third year in a row, the Finance Minister has opted to leave the general fuel taxes unchanged, but an increase in the carbon tax will see a slight fuel price increase from April 2.

Finance Minister Enoch Godongwana announced during his delayed 2025 Budget Speech on March 12, that the carbon tax element on fuel will increase by three cents. This effectively raises the petrol carbon tax from 11 cents to 14 cents per litre, and from 14 cents to 17 cents in the case of diesel.

However, the controversial General Fuel Levy remains at R3.85 for petrol and R3.70 for diesel, while the Road Accident Fund Levy stays put at R2.18.

Although this is a step in the right direction, South African fuel still carries a relatively heavy tax burden, with the aforementioned levies adding up to R6.03 for every litre of petrol sold in the country.

This means taxes account for around 28 of the coastal fuel price, and if youre filling up a 50 litre tank, over R300 goes to the government.