Calls grow for fuel-tax relief after steep petrol and diesel increases
COSATU and BOSA are calling for further fuel-levy relief and Road Accident Fund reform after sharp petrol and diesel increases placed additional pressure on households, commuters and businesses.
Pressure is building on the South African government to ease the tax burden on fuel prices as tensions between Iran and the US continue to disrupt oil markets. Petrol prices increased by R1.34 per litre and diesel by R2.93 to R3.15 per litre, adding pressure to household budgets. COSATU has demanded temporary levy relief, reforms to the Road Accident Fund, and targeted assistance for commuters and low-income households.
The party argues that workers spend nearly half of their wages on transport, making them particularly vulnerable to fuel price hikes. National Treasury's 2026 Budget Review notes that the General Fuel Levy amounts to R4.10 per litre for petrol and R3.93 for diesel, with an additional R2.25 per litre from the Road Accident Fund levy.
BOSA has called for another temporary reduction in these levies if the conflict persists, suggesting that funds should come from waste reduction rather than borrowing. Developmental economist Prof. Dumisani Jantjies warned that while levy relief is necessary, it is not a complete solution and called for a rules-based fuel price stabilisation mechanism.
He stressed the need to target relief towards lower-income households, particularly diesel users, and to move towards decoupling the Road Accident Fund from fuel pricing. Government officials have acknowledged the possibility of targeted assistance for poorer households relying on illuminating paraffin, with discussions underway between the National Treasury and municipalities.
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