A copy of the postponed Budget Speech that would have been delivered by Finance Minister Enoch Godongwana yesterday, 19 February, shows that government planned to keep fuel tax hikes at bay for yet another year.
In February 2022, Godongwana announced there would be no increases to the General Fuel Levy (GFL) or Road Accident Fund (RAF) Levy as part of a relief measure aimed at helping struggling households get through the aftermath of the Covid-19 pandemic.
The decision was repeated in 2023, and again in 2024.
While organisations such as the Automobile Association warned that this is an unsustainable strategy and that there were high odds of the GFL and RAF Levy being hiked in 2025, it seems these fears would not have materialised.
“The government is painfully aware of the cost-of-living pressures faced by households, including high food prices, rising fuel and electricity costs, and transportation expenses,” said Godongwana’s would-be speech.
“This is why we are taking concrete steps to protect vulnerable households.”
Among the relief measures was the extension of the fuel levy freeze for another year, which was projected to save consumers around R4 billion.
That said, motorists shouldn’t get excited too quickly.
Given that the 2025 Budget Speech was postponed due to arguments behind closed doors surrounding some of the new policies, there is a chance that the GFL and RAF Levy could still be hiked when the official keynote is delivered on 12 March.
After the cancellation of the speech, Godongwana emphasised that any changes to the current proposals will have trade-offs.
Should the changing of one policy result in a significant loss of revenue, it will have to be recouped elsewhere, with fuel levies often touted as one of the easiest areas for government to make up lost income.
Treasury furthermore noted that none of the proposals in the leaked documents seen by the media can be considered official.
Fuel Price Intervention Plan absent
Absent from Godongwana’s would-be speech was anything surrounding the new Fuel Price Intervention Plan.
It is expected to be anchored on “measures to tackle high fuel prices…[and] ensure that South Africans can afford the fuel and the ability to transport,” said Democratic Alliance Spokesperson on Electricity and Energy, Kevin Mileham.
Previous suggestions on how this could be achieved include a complete review of the fuel price calculation and fuel taxes, a revision of industry margins, the introduction of a price cap on petrol 93, deregulating petrol prices, removing guidance on diesel prices, bi-weekly price changes instead of once a month, and a review of how inland transport costs are determined.
In late 2024, the Minister of Finance announced that the Fuel Price Intervention Plan would soon be tabled in Cabinet.
Approximately six months after the announcement was made, the public has still not seen nor heard the finer details of the planned relief measure.
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