Budget 2026 | Fuel and RAF levy increases throw more money at a broken system, critics say

Fuel prices are at their lowest in four years following February’spetrol and diesel price decreases; however, South Africansremain vulnerableto international oil price shocks. Late-month data from the Central Energy Fund is already pointing towards a petrol price increase of around 15 cents in March, while diesel is looking set to rise by about 60 cents. April is set to see further increases, given that the 2026 Budget Speech, delivered by Finance Minister Enoch Godongwana on Wednesday, signalled increases to the General Fuel Levy (GFL) as well as the Road Accident Fund Levy (RAF).

To that end, GFL will increase by 9 cents per litre for petrol and 8 c/l for diesel, while the carbon fuel levy goes up by 5 cents and 6 cents respectively, and the RAF sees a hike of 7 cents. All together, motorists are looking at a 21-cent increase for both fuel types. Bobby Ramagwede, CEO of the Automobile Association, said the blanket inflationary adjustment to these levies will apply further pressure to already embattled consumers. “Whilst the inflationary adjustment to taxes may be justified, the prevailing inefficiencies of RAF won’t be remedied by ‘throwing more money’ at the problem.”