EFF Takes Legal Action to Block Fuel Levy Hike, Warns of Impact on the Poor

The Economic Freedom Fighters (EFF) have launched an urgent legal bid to stop the government’s proposed fuel levy increase, set to take effect on June 4. This move marks the latest in a string of challenges aimed at Finance Minister Enoch Godongwana’s budget plans for 2025.

The EFF filed papers in the Western Cape High Court on Wednesday, arguing that the fuel levy hike—announced during last week’s budget speech—would place an unbearable burden on poor and working-class South Africans already struggling with a cost-of-living crisis.

A Tax That Hits Where It Hurts Most

Godongwana’s proposal includes a 16c per litre increase for petrol and 15c for diesel. This would be the only new tax introduced in the revised version of the national budget. The levy, which contributes to government revenue and funds the Road Accident Fund (RAF), currently makes up about 18% of the fuel price, with the RAF levy accounting for another 10%.

But the EFF insists this hike is not only economically harmful—it’s also unconstitutional.

“We cautioned the minister several times, asking him to consider the impact this increase will have on vulnerable South Africans,” the EFF said in a statement. “Raising taxes like the fuel levy without a Money Bill is unlawful and strips Parliament of its rightful oversight role.”

Legal and Parliamentary Pressure

The EFF says it has also formally raised the issue with National Assembly Speaker Thoko Didiza and Standing Committee on Finance Chair Dr Joseph Maswanganyi. The party warned that approving the Fiscal Framework with the fuel levy increase included could render the entire national budget invalid.

“If this levy is passed without following the correct legal channels, it could lead to the courts overturning the national budget—after money has already been spent. That would be disastrous for public services, governance, and public trust,” the EFF said.

A Repeat of the VAT Controversy

This latest showdown comes after a public outcry and legal questions surrounding the government’s now-abandoned VAT increase. That 0.5% hike was scrapped in April following criticism from civil society and opposition parties—including the EFF.

With the fuel levy now under similar scrutiny, the EFF is pushing hard to ensure fiscal decisions follow proper legislative procedure and don’t further burden those already feeling the economic squeeze.

More Legal Action on the Horizon?

The EFF warned that it is prepared to take additional legal steps if the government does not withdraw the fuel levy hike or follow proper processes in implementing it.

As South Africa braces for potential fuel price hikes, this legal battle could have major implications for both the government’s financial plans and its political credibility.

{Source: The Citizen}

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