The government plans to increase three major fuel taxes in South Africa – General Fuel Levy, Carbon Fuel Levy, and Road Accident Fund Levy.
Finance Minister Enoch Godongwana delivered the National Budget Speech today (Wednesday, 25 February 2026), where he proposed several adjustments to the country’s various taxes, levies, and excises.
This includes the General Fuel Levy (GFL), Carbon Fuel Levy, and Road Accident Fund (RAF) Levy, which will be adjusted for both petrol and diesel sales.
These are the official levy adjustments for petrol for 2026, as outlined in the Budget Speech:
- General Fuel Levy – 9c per litre
- Carbon Fuel Levy – 5c per litre
- Road Accident Fund Levy – 7c per litre
Diesel will receive near-identical adjustments, as shown below:
- General Fuel Levy – 8c per litre
- Carbon Fuel Levy – 6c per litre
- Road Accident Fund Levy – 7c per litre
These changes will take effect from 1 April 2026.
The National Treasury’s review of the Budget Speech noted that the proposed increase for the GFL is less than inflation, while the RAF Levy is being increased to match inflation.
The fourth fuel tax – the Customs and Excise Duty – will remain unchanged for the next financial year.
“Fuel prices have remained subdued, and it is proposed that from 1 April, the general fuel levy is increased by less than inflation to R4.10/litre for petrol and R3.93/litre for diesel,” Treasury said in its budget review.
“The Road Accident Fund (RAF) levy will be increased by 7c/litre to R2.25/litre from 1 April, in line with expected inflation, while the customs and excise levies remain unchanged.”
The GFL is charged on every litre of fuel sold in South Africa and is used as a source of general revenue for the state to use as it sees fit.
The Carbon Fuel Levy, meanwhile, is an environmental tax introduced as part of the broader Carbon Tax Act. It is also added to the price of fuel and is intended to reduce greenhouse gas emissions and encourage cleaner energy consumption.
The Treasury stated that the carbon levy plays an important role in South Africa’s climate change mitigation efforts.
“It increased from R236 to R308 per tonne of carbon dioxide equivalent from 1 January 2026,” it said.
“The carbon fuel levy will increase to 19c/litre for petrol and 23c/litre for diesel from 1 April 2026, as required under the Carbon Tax Act.”
Lastly, the RAF Levy is a source of revenue for the Road Accident Fund, which is meant to provide financial relief for motorists injured on South Africa’s roads.
The GFL and RAF Levy are the two largest fuel taxes in South Africa, collectively representing roughly a third of the final retail price paid by consumers.
Right now, the GFL adds 401c per litre, while the RAF Levy adds another 218c per litre.
This is the first time the RAF Levy has been increased since the 2021/2022 financial year, as South Africa previously froze all fuel tax increases as part of an economic relief effort in the wake of the Covid-19 pandemic.
The GFL received an increase for the first time in three years in June 2025.
The government previously attempted to raise VAT, but this drew widespread backlash, prompting the increase to the GFL instead.
South Africa goes silent on promise to lower petrol prices
The government’s decision to raise fuel taxes contradicts its promise to review the country’s fuel price formula and reduce the cost of living.
Back in 2024, the Minister of Mineral and Petroleum Products, Gwede Mantashe, stated that the true price of petrol is closer to R14 per litre, and that it has been greatly distorted by levies.
He noted at the time that the GFL and RAV Levy are responsible for pushing petrol past the R20 per litre mark.
“In the fuel price, there is the general fuel levy, there is the Road Accident Fund, linked to the price of fuel. So, instead of buying a litre of fuel for R14, you buy it for R20,” Mantashe said.
“Our argument is: you are distorting the price of fuel. Let’s find the formula for separating these two things and have the price of fuel visible.”
Mantashe added that it was a prioirty issue for the government, stating “we intend to conclude this discussion in the shortest time possible.”
This came after President Cyril Ramaphosa announced in July 2024 that the government would undertake a comprehensive review of the fuel price formula.
However, none of this has come to pass, and the levies on petrol and diesel are now set to increase next month.
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