26.02.2026
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Godongwana announces increase in general fuel levies

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  • Fuel being refilled inside of a car.

Finance Minister Enoch Godongwana has announced an increase in fuel levies, which he says are in line with inflation.

Godongwana was delivering his 2026/27 budget in Parliament in Cape Town.

“In terms of fuel levies, the total increase will also be in line with inflation. The general fuel levy will go up by 9 cents per litre for petrol and 8 cents per litre for diesel. The carbon fuel levy will go up by 5 cents per litre for petrol and 6 cents for diesel. The Road Accident Fund levy will increase by 7 cents per litre,” says Godongwana.

 

 

The minister also announced an increase in tobacco and alcohol excise duties.

The tax on a 20 pack of cigarettes will now increase from R22.81 to R23.58, while the cost of cigars will rise by R4.56 per 23 grams.

A 340 millilitre can of beer or cider will now increases by 8 cents, while a 750-millilitre bottle of spirits will increase by R3.20.

 

 

Godongwana said the planned tax hikes amounting to revenue of R20 billion have been shelved amid improved tax collection.

The minister also announced that the limit for tax-free savings increases from R36 000 to R46 000 annually.

The old age and disability grant increases by R80 to R2 400. Social grants are allocated over R290 billion in the budget.

 


Spending on peace and security will increase by around 9% to over R290 billion.

R883 million is shifted from the Department of Justice to the Office of the Chief Justice, with the minister saying that this will help the office manage its own budgets.

An additional R687 million will be allocated to increase capacity at the judiciary.

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