Amid the sharp increase in gasoline and diesel prices, there is a growing number of demands for relief in the form of reduced fuel levies and reforms to the Road Accident Fund (RAF). The price hike is placing significant pressure on South African households.
Pressure on the government is intensifying with calls to adopt additional measures to lessen the tax burden embedded in fuel prices. This situation is exacerbated by volatility in the global oil market, driven by tensions between Iran and the United States, which further strains citizens' budgets.
These appeals emerged following another significant fuel price increase recently. Demands include temporary levy reductions, reform of the Road Accident Fund, and targeted assistance for passengers and low-income groups.
The price of gasoline increased by 1.34 Rand per liter, while diesel fuel rose by 2.93 Rand, reaching 3.15 Rand per liter.
The price increase occurs against the backdrop of renewed clashes between the US and Iran, destabilizing oil markets. Concerns over potential supply disruptions through the Strait of Hormuz are sustaining high crude oil prices.
Mathieu Parks, coordinator of the COSATU party group, stated that workers, passengers, and the economy cannot continue absorbing repeated shocks from rising fuel costs. He urged the government to restore fuel levy subsidies until prices return to pre-war levels.
He also insisted that the government must fulfill 'long-term commitments' to review and reduce approximately one-third of the fuel cost allocated to taxes and levies. Parks emphasized that 'reforming the Road Accident Fund, including submitting necessary legislative amendments to Parliament, is key and urgently needed.' Furthermore, he advocated for increased investment in passenger railways, buses, and taxis to provide more affordable alternatives for commuters. COSATU notes that workers spend an average of 40% of their wages on transport.
According to the National Treasury Budget Review for 2026, the total fuel levy amounts to 4.10 Rand per liter of gasoline and 3.93 Rand per liter of diesel fuel, with the Road Accident Fund levy adding an additional 2.25 Rand per liter. Thus, these two levies alone account for 6.35 Rand per liter of gasoline and 6.18 Rand per liter of diesel fuel.
In line with a joint statement from the National Treasury and the Department of Mineral Resources and Energy, the government temporarily reduced the total fuel levy by 3 Rand per liter starting April 1st, which is estimated to represent a loss of approximately 6 billion Rand in revenue for one month.
Build One South Africa (BOSA) proposed considering another temporary reduction if the conflict between Iran and the US continues to sustain high fuel prices. The party stated that the government must immediately decrease the total fuel levy and the Road Accident Fund levy to protect consumers from prolonged international oil shocks. BOSA believes that any temporary reduction should be financed through reallocation of expenditures and loss reduction, not through additional borrowing. If a permanent reduction in fuel taxes is unfeasible, BOSA suggests considering targeted support for public transport operators, small businesses, and low-income households. The party also demanded a broader review of the fuel pricing and taxation system, as well as greater transparency in the fuel price calculation formula.
Economist and professor Dumisani Jantjis noted that reducing levies is worth considering, but warned that taxes are not the primary cause of the September increase. He stated: 'The tax component did not cause this month's pain. Reducing levies treats the symptoms. It is still worthwhile, but we must not pretend it is the cure.' Jantjis added that the burden cannot be measured solely by fuel purchasers, as higher costs are passed on to taxi fares and food prices. Low-income families often have fewer transport alternatives and spend a significantly larger portion of their budget on food, making them particularly vulnerable to rising diesel prices.
He argued that the government should replace sporadic interventions with a rules-based fuel price stabilization mechanism, featuring a specific trigger, aid level, maximum duration, and funding source. Jantjis also advised directing aid where the fuel price increase hits low-income households hardest, including a greater focus on diesel and targeted fuel rebates for public transport operators, provided fare stability is maintained. Regarding the RAF, he cautioned that addressing management issues will not lead to an immediate drop in pump prices. He noted: 'Fixing RAF governance will not put a single cent back into our fuel tanks next month. It will only stop the hole from deepening.'
In the medium term, Jantjis suggested beginning to decouple the RAF from fuel prices, redirecting most of its funding to risk-assessed vehicle contributions while maintaining a smaller fuel allocation for certain claims. The government has also acknowledged the possibility of providing targeted assistance. Robert Maake, Director of the Fuel Pricing Mechanism at the Department of Mineral Resources and Energy, reported that discussions are underway regarding support for poor households dependent on kerosene, involving the National Treasury and municipalities. In the long term, Maake believes that increasing domestic production and local refining can reduce South Africa's vulnerability to international price and currency shocks.
Economist Douwe Rudd agreed that the government could improve the efficiency of the RAF and public spending, but warned that tax cuts would only provide temporary relief. He stated: 'We can cut taxes, but then we will have to compensate for the taxes somewhere else or raise them later.' Rudd argued that the deeper problem is weak economic growth, which does not leave households enough room to absorb sudden increases in essential expenses. He concluded: 'The only alternative is to bring South Africans to a position where they can afford such increases.'
