JOHANNESBURG - Finance Minister Enoch Godongwana is set to present his Budget speech on Wednesday.
Many South Africans are eager for news regarding fuel and transport expenses.
Over the past year, fuel prices have fluctuated significantly, largely due to changes in global oil rates and fuel levies.
To get a clearer picture, we reached out to Eleanor Mavimbela from the Automobile Association (AA) to discuss what motorists and consumers can expect.
Do you anticipate any fuel levy increases in this Budget, and how would that impact motorists?
The Minister of Finance did not increase the general fuel levy in 2023 and 2024. The general fuel levy generates billions in tax revenue for the country. Given the challenges that the Treasury is experiencing in terms of a budget deficit, there is a high chance that the GFL will increase this year.
If it does increase , it will mean that motorists will again have to contend with record high fuel prices.
Given the rising cost of living, should government consider reducing or freezing fuel levies?
Not increasing or freezing the fuel levy is welcome and has helped ease the burden on consumers, but it’s not a sustainable solution. A review of the pricing structure would ensure a more sustainable solution.
We have seen fluctuating fuel prices over the past year. What factors have been driving these changes, and how do you expect the Budget to influence future prices?
There are two main factors that drive fuel prices in South Africa. Those are the rand/US dollar exchange rate and international product prices. We appreciate that the government does not have control over these factors. So as the AA we are still strongly advocating for a review of the fuel price structure to seek alternative funding models on the variables that are in the control of the government, such as the RAF.
What advice do you have for motorists to manage fuel costs effectively in 2025?
Regular maintenance of your vehicle and ensuring that it is always fit for purpose will ensure that your vehicle does not use more fuel than needed.
Looking ahead, what fuel price trends should South Africans prepare for in the coming months?
Fuel price trends are difficult to predict because of the variables that make up our fuel price structure. That is, rand/US dollar exchange rate and international product prices.
Tune in for the national Budget speech on Wednesday at 2pm LIVE on eNCA.
- by Estelle Bronkhorst
