Calls grow to cut fuel levies as consumers brace for record price spike on Wednesday

South Africans are facing a sharp fuel price increase on 1 April, with petrol expected to rise by more than R5 per litre and diesel by more than R9 per litre.

The looming fuel price shock is raising concern about how households will cope, with warnings that higher fuel prices will push up food prices, transport costs and inflation.

DA proposes fuel levy cut

The Democratic Alliance (DA) has proposed a temporary 50% cut to fuel levies for six months.

This would reduce the tax component of fuel from about R6.35 per litre to around R3.17, offering some relief at the pumps.

DA finance spokesperson Mark Burke said the plan could cut more than R3 from the price of petrol and diesel.

“If we implement this plan, there will be a 50% reduction in the general fuel levy and the Road Accident Fund levy… more than R3 reduction in the price of petrol and diesel,” he said.

He added that the proposal is fully funded and would not require tax increases, urging the government to act to avoid ‘an unaffordable petrol and diesel price increase’.

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However, the proposed fuel levy cut comes at a cost.

Government would lose about R6.5 billion a month in revenue, money that currently funds essential services, including healthcare, education and road safety.

Fuel levies are not ring-fenced and contribute broadly to the national budget.

Limited relief for consumers

Experts say the savings for consumers may be too small to make a meaningful difference.

Head of transport operations at the CSIR, Dr Mathetha Mokonyama, said the monthly benefit would be limited.

For taxi users, savings would be just over R8 per month. Bus users would save about R6, while motorists could save just over R100 per month.

“So whether that makes a difference… It’s about how long is a piece of string,” he said.

He compared the savings to basic food items, saying taxi users would save the equivalent of about five loaves of bread per month.

Structural problems remain

Mokonyama warned that short-term measures like fuel levy cuts do not address deeper problems in South Africa’s transport system.

“We have a structural problem, and it could get worse,” he said.

He pointed to the high cost of mobility, estimating South Africans are paying about R300 billion more than necessary each year just to move people.

He said long-term solutions should include improved public transport, investment in rail, and incentives for electric vehicles.

Global crisis adds pressure

The fuel price surge is being driven by global conflict, with other countries already taking drastic steps.

Some nations have introduced emergency measures, including limiting electricity use or reducing working days to cut fuel demand.

Mokonyama said South Africa needs to take the situation seriously and respond with long-term interventions.

“The people who are going to be impacted the most are public transport users,” he said.

Cost of living fears grow

With fuel prices set to rise sharply, many South Africans are bracing for a knock-on effect across the economy.

Higher fuel costs are expected to increase the price of food and basic goods, placing further pressure on households already struggling to make ends meet.

For more information, listen to Mokonyama on CapeTalk’s Good Morning Cape Town with Lester Kiewit using the audio player below: