Automobile Association slams new fuel levy hike

JOHANNESBURG - The Automobile Association (AA) has slammed a new fuel levy hike, warning that the move will drive up transport costs, push food prices higher, and place more pressure on already struggling households. 

From 4 June, the general fuel levy goes up by 16 cents a litre for petrol, and 15 cents for diesel, marking the first increase in three years.

In his latest version of the country's budget, Finance Minister Enoch Godongwana described it as a necessary move to deal with inflationary pressures.

READ: Budget 3.0: Fuel levy will increase again in June, reveals Godongwana

The AA said South Africans are already battling rising interest rates, electricity tariffs, and unemployment, and that adding to the cost of fuel now will have widespread and lasting consequences.

The group warns that lower-income households who spend a larger share of their income on transport will be hardest hit.

It also said the total tax take from fuel, including the Road Accident Fund (RAF) levy, would now exceed R6 per litre in some areas, making up over 30% of the pump price before the actual fuel cost is even factored in.

Spokesperson Eleanor Mavimbela said the AA is calling for a forensic audit into how these funds are spent.

"The AA renews its call for a comprehensive and transparent review of South Africa’s fuel pricing model. We stand ready to engage with government and all stakeholders to develop sustainable, transparent, and equitable solutions that support both economic growth and the citizens who drive it."

While the hike may seem modest, the AA said it points to a bigger problem, a tax system that hits motorists first, without a long-term plan for affordable transport or road funding.