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 you’re filling up a 50 litre tank, over R300 goes to the government.
National Treasury says that its decision not to increase the General Fuel Levy will save consumers around R4 billion, presumably versus what an inflation-linked tax increase would have cost.
However, South Africans will be paying more for virtually everything else, with the VAT rate set to increase to 16%, through a half-percentage hike in 2025 and another half-percentage in the 2026 financial year.
Sin taxes are also set to increase in 2025, with excise duties on alcoholic beverages going up by 6.75% and tobacco products by 4.75%.