Fuel shock: DA pushes for 50% levy cut as SA faces record petrol hike

As South Africans brace for a massive increase in petrol and diesel prices from April 2026, the DA has proposed a 50% cut in fuel levies to counter the record price hike.

The country is facing its highest-ever hike in fuel prices due to the US-Israel’s war on Iran, as motorists also remain deeply concerned about fuel shortages.

Negotiations

The DA said it wants to negotiate in good faith with the ANC, its major partner in the Government of National Unity (GNU) and the Minister of Finance Enoch Godongwana, to consider its proposal to cut both the general fuel levy and the Road Accident Fund (RAF)levy by 50% in an effort to reduce the impact of next month’s petrol price increase.

“South African households are in the line of fire of the oil price shock. Many minimum wage workers spend a third of their wages on transport. Petrol price increases will drive up taxi fares, they will drive up food prices, and they will drive down growth. We need to protect South Africans from them, especially if the price we pay is less patronage,” said DA spokesperson on finance, Mark Burke.

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“Combined, the two levies contribute R6,35 to the overall price of fuel. A 50% reduction would dampen increases by R3,17 and provide immediate and essential relief to South Africans who are staring down the barrel of a massive petrol shock in a week’s time: petrol is set to increase by more than R5 per litre and diesel by more than R9 per litre.”

Tax revenue

Burke said his party is aware that such a pause in levies would affect tax revenue as well as RAF funding, totalling around R6,5 billion a month.

“This is not insignificant, but the shock of not doing anything to protect South Africa’s fragile economy is likely far larger. Sharp petrol price increases will hurt GDP, increase inflation, and cripple household budgets.

“Moreover, it is possible for the government to recover these lost funds without new taxes and without new debt,” Burke said.

Fuel price relief

Burke added that he also wrote to President  Cyril Ramaphosa and Gondongwana to request urgent action on fuel price relief.

“South Africans should not be forced to carry the full cost of an international conflict outside of our control, especially when the government continues to waste taxpayer money which we can control.”

Meanwhile, Mineral and Petroleum Resources Minister Gwede Mantashe urged South Africans not to panic about a possible fuel shortage, saying vessels carrying cargo and supplies destined for South Africa are passing through the Strait of Hormuz without interruption or threats of attack from Iran.

With the price of petrol expected to be announced next week, Mantashe said there was little South Africa could do about oil price shocks.

The US-Israel war in Iran has ignited global panic, with the conflict expected to severely impact fuel prices and supply.