The legality of Budget 3.0’s 2025 fuel levy increases will be challenged in the National Assembly. Finance Minister Enoch Godongwana announced his third fiscal framework this month, but this one won’t be accepted without a fight either.
According to a post on Economic Freedom Fighters’ (EFF) social media, proposed fuel levy increases are unlawful. Essentially the opposition party argues that 2025 fuel levy increases – much like overturned VAT increases – are a ‘tax.’ And like the High Court ruling last month, such a tax cannot go ahead without support in the National Assembly.
2025 FUEL LEVY INCREASES
This looks set to be another impasse to stifle the fiscal framework, like Minister Godongwana’s first failed budget back in February. Therefore, it’s difficult to know how this will impact fuel prices, and the economy as a whole, beyond June 2025.
In general, the latest available indicators show positive signs for South African motorists in the coming months. This is mainly due to a lower brent crude oil price and a stronger rand. However, the threat of 2025 fuel levy increases paint a worsening picture as each day passes.
Moreover, the EFF contends that the proposed 2025 fuel levy increases cannot go ahead with support in parliament. The standing committee on finance sits on Wednesday 4 June 2025 and it is only then that such an increase can be approved. Not before, as 2025 fuel levy increases have been slated to go into effect the same day.
CALLS FOR GODONGWANA’S RESIGNATION
EFF leader Julius Malema has been calling for Finance Minister Godongwana’s resignation since February 2025. He says the minister’s fiscal frameworks are out of touch with the average South African. And do not take into account the cost-of-living crisis that the vast majority are experiencing.
As before with overturned VAT increases, we wait to see how the 2025 fuel levy increases play out in the National Assembly next week. And possibly in the High Court, should wholesale adoption not be reached …   Â
SHOULD THE FUEL LEVY BE INCREASED TO HELP FUND GOVERNMENT?
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