The EFF has approached the Western Cape High Court seeking an urgent suspension of the increase of the fuel levy in June, arguing that the announcement by the finance minister Enoch Godongwana bypasses parliamentary processes and is unlawful.
The fuel levy increase of 16c increase in petrol and 15c increase in diesel is set to come into effect on June 4 as part of the government revenue generation measures for 2025/2026 after the withdrawal of the 0.5 percentage point increase in VAT in April. The increase is expected to generate R3.5bn in revenue for this year.
Before Godongwana’s announcement on May 21 during the tabling of the budget before parliament, the latest data from the Central Energy Fund (CEF) indicated that wholesale diesel prices could drop by as much as 50c/l, while petrol could decline by up to 23c/l.
The 2025 Fiscal Framework & Revenue Proposals is currently being considered by parliament’s standing committee on finance. Other parties including MK party and ActionSA have also opposed the fuel levy hike.
“The same constitutional, economic, and procedural reasons that led to the rejection of the VAT increase also apply to the fuel levy increase — even if this is not immediately obvious to majority of political parties in parliament and those who made submissions during public hearings on the 2025 Fiscal Framework and Revenue Proposals in parliament,” the EFF said in a statement.
“Allowing such an increase without a Money Bill risks the entire national budget being declared invalid by the courts — potentially long after funds have already been spent. This would severely damage the constitutional standing of parliament, undermine financial accountability, and cause serious consequences for service delivery and public confidence in government.”
The EFF’s treasurer-general, Omphile Maotwe, who is also a member of the National Assembly standing committee of finance, says the minister’s unilateral decision is unlawful as it is a violation of the country's tax laws which require parliamentary approval.
“The minister refers to this fuel levy as an increase in tax,” Maotwe says in court papers filed on Thursday.
“In terms of section 77(3) of the constitution of the Republic of SA, the minister must introduce a Money Bill, which imposes tax and/or levy as characterised in section 77(1) and (2) of the constitution. That will trigger the section 75 parliamentary process before that Money Bill can take legally (take) effect. Put simply, our constitutional order dictates that only elected representatives may impose taxes, and not a single, unelected executive member,” Maotwe says.
The EFF has also argued that the increase in fuel levy will disproportionately have an adverse effect on low-income individuals as they tend to spend majority of their income on transportation costs.
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