South African households are facing severe pressure from rising fuel prices, with many minimum wage earners spending up to a third of their income on transport. Petrol price hikes not only increase the cost of commuting but also drive up food prices and weigh on economic growth, making immediate relief a priority for vulnerable citizens.
The Democratic Alliance has proposed working with the Minister of Finance to cut both the RAF and General Fuel Levies by 50% for the duration of the oil price shock. Currently, these levies add R6.35 per litre to fuel costs, and halving them would reduce prices by R3.17, offering urgent relief as petrol is projected to rise by over R5 per litre and diesel by more than R9 per litre.
While such a measure would reduce government revenue by approximately R6.5 billion per month, the DA argues that the economic shock from inaction—including higher inflation, constrained household budgets, and slowed GDP growth—would be far more damaging. The party also outlines ways for the government to recover lost funds without imposing new taxes or debt, including drawing on surpluses from the Compensation Fund, SETAs, strengthening the TARS spending review program, and expanding ghost worker audits across municipalities and state entities.
The Compensation Fund, for example, reportedly holds a R21.7 billion surplus despite mismanagement and audit failures, sufficient to cover more than three months of fuel levy relief. SETA surpluses could provide an additional month, while TARS savings and ghost worker audits offer further potential relief. Many of these reforms would also create long-term savings, meaning that the temporary fuel levy reduction would not compromise fiscal stability but rather complement efforts to curb wasteful spending.
The DA emphasizes that South Africans should not bear the brunt of international oil price shocks while domestic funds are mismanaged. The party has committed to pressing the President and the Finance Minister for urgent action to protect households, arguing that decisive leadership and efficient resource management can provide both immediate relief and longer-term fiscal benefits.
