Budget 2026: Motorists to pay more for fuel from 1 April – here’s by how much

Minister of Finance Enoch Godongwana accompanied by the Governor of the South African Reserve Bank, Lesetja Kganyago, and the Commissioner of the South African Revenue Services, Edward Kieswetter, walk to Parliament for the tabling of the Budget 2026. Picture: X/ParliamentofRSA Finance Minister Enoch Godongwana has announced an increase in the fuel levy – a move that was anticipated by many analysts. Delivering the 2026 budget speech on Wednesday in Cape Town, Godongwana said the fuel levy hike will be in line with inflation.

This is thesecond consecutive fuel levy hike, following three years without increases. The decision is expected to add further pressure on already-burdened households. Before delivering the unwelcoming news, he noted that increases to certain taxes are unavoidable.

The minister said the general fuel levy will increase by 9 cents to R4.10 per litre for petrol and 8 cents to R3.93 per litre for diesel. This will take effect from 1 April 2026. Fuel levy is a tax charged on every litre of fuel sold, with a portion going to the government and another to the Road Accident Fund (RAF levy) to compensate victims of motor vehicle accidents.

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The levy amounts to 18% of the retail price, while the RAF levy is about 10%. “The RAF fuel levy is expected to increase by 7 cents to R2.25 per litre,” he said. Customs and excise levies remain unchanged.

Increasing the fuel levy stems from the government’s commitment to increase revenue to protect and bolster frontline services. Since 2022, Godongwana has maintained that he will not hike the fuel levy to help South Africans cope with the high cost of living. However, he has made a U-turn after scrapping the value-added tax (VAT) increase last year.

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