EFF takes fuel levy increase to court after budget 3.0

The EFF has launched a court challenge to the fuel levy increase introduced by the budget 3.0.

In his third attempt at tabling the budget, finance minister Enoch Godongwana increased the fuel levy by 16c/l and 15c/l on petrol and diesel respectively.

The levy is expected to kick in on June 4.

The increase was seen by many as a replacement for the VAT hike that was rejected. However, experts have argued the fuel levy increase was meant to cover the more than R5bn intended for the Road Accident Fund which they say has not been receiving funding in the past three years.

The EFF on Thursday said it was interdicting the fuel levy increase after attempts to get Godongwana to reconsider this were ineffective.

“We took this action after repeated efforts to caution the minister and appeals to his conscience failed. We wrote to the minister, urging him to consider the effect of this increase on the poor and working-class people, especially as the cost-of-living crisis is deepening,” the EFF said.

“We also reminded him that, like the VAT increase, raising the fuel levy without introducing a proper money bill is unlawful and undermines parliamentary oversight.”

There is also a concern that the increase will negatively affect motorists and South Africans who use public transport. They believe it is inevitable that taxis and buses will opt to increase fares, directly affecting consumers. The increase is also going to affect the transport and logistics sector, which relies heavily on trucks as the railway sector remains in tatters. This means the cost of transporting goods is likely to go up.

The EFF said despite the concerns it raised, the minister appears determined “to force through the fuel levy increase” after what it said was a defeat in the attempt to hike VAT.

“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 most political parties in parliament and those who made submissions during public hearings on the 2025 fiscal framework and revenue proposals in parliament.

“The EFF has also written to the speaker of the National Assembly and the chairperson of the standing committee on finance. We warned them if parliament proceeds to adopt the 2025 fiscal framework and revenue proposals that include this fuel levy increase, the entire budget process will be placed in jeopardy.”

The EFF warned that allowing the increase without a money bill would risk the budget being declared invalid by the courts — possibly long after funds have already been spent.

“This would damage the constitutional standing of parliament, undermine financial accountability and cause serious consequences for service delivery and public confidence in government.”

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