Government under pressure to slash petrol prices in South Africa

AfriForum is calling on the government to implement relief measures for motorists and the broader economy as South Africa braces for massive petrol price hikes this April.

The civil action group has written to Finance Minister Enoch Godongwana, urging him to delay the plan to increase the country’s fuel taxes.

During his 2026 Budget Speech, Godongwana announced that the government would raise the country’s two largest fuel taxes – the General Fuel Levy (GFL) and the Road Accident Fund (RAF) Levy – to account for inflation.

These adjustments are set to take effect on 1 April 2026, but AfriForum is now calling for the minister to halt the tax increases and introduce temporary tax cuts to soften the blow from the skyrocketing price of fuel.

At the start of the month, the United States and Israel launched coordinated attacks against Iran’s leadership, prompting the Islamic Republic to retaliate and plunging the entire region into war.

This has badly affected the production and shipping of oil in the Middle East, causing oil prices to soar past $90 per barrel.

As a result, data from South Africa’s Central Energy Fund indicates that both petrol and diesel will experience a steep under-recovery next month.

Petrol is currently expected to go up by around R3.35 per litre, while diesel will take an even worse hit of R5.80 per litre.

While these are not the final price adjustments that will take effect in April, fuel prices are ultimately dependent on whether or not the situation with Iran stabilizes over the coming weeks.

In a worst-case scenario, local and foreign economists have warned that oil prices could go as high as $108 per barrel, resulting in a petrol price hike of over R6 per litre.

Iran has also closed the Strait of Hormuz – a crucial shipping lane -and threatened that oil prices could exceed $200 per barrel if the US doesn’t back down.

AfriForum warned that oil prices have already surged by 40% and that government intervention is desperately needed to shield households and businesses from the knock-on effects of higher fuel costs.

In a letter to the minister, AfriForum’s head of public relations, Ernst van Zyl, argued that the type of relief being proposed has already been used before in dire circumstances.

He cited the relief measures introduced in the wake of the Covid-19 pandemic and Russia’s invasion of Ukraine, when the government temporarily reduced the GFL by R1.50 per litre to offset the global energy shock.

“AfriForum, alongside many economists, believe this to be the appropriate approach to cushion the impact of this latest crisis of a similar nature,” Van Zyl said.

He added that the fuel hikes will have far-reaching consequences for the economy since transport costs impact almost every stage of production and distribution.

“Raw materials need to be transported to be turned into intermediate goods. Intermediate goods need to be transported to be turned into final goods.”

“Final goods need to be transported to be sold to consumers. Every step becomes more expensive if the fuel price increases.”