South Africa’s ultra-left opposition party, the Economic Freedom Fighters (EFF), has taken legal action against the government over its plan to increase the fuel levy by 4%, a move the party describes as “unjust” and harmful to the country’s working-class citizens.
The EFF filed the case at the High Court in Cape Town on Tuesday, June 3, 2025, just one day before the new levy was scheduled to take effect. The party is asking the court to stop the implementation of the hike, claiming that Finance Minister Enoch Godongwana failed to follow due parliamentary procedures in announcing the increase during his latest budget presentation.
Tax Burden Too Heavy on the Poor
According to the EFF, the fuel levy hike will worsen the financial struggles of millions of South Africans already battling high inflation, low wages, and rising unemployment.
“This increase places an unjust burden on the working class and the poor, who are already reeling from rising costs of living, stagnant wages, and ongoing economic hardship,” the EFF said in a statement issued before the court hearing.
The fuel levy is included in the price of petrol and diesel paid by consumers. It is one of the government’s tools for raising revenue, but critics argue it is regressive, affecting poor households more than the wealthy.
Finance Minister Defends the Hike
In response, Minister Godongwana defended his decision in a sworn court statement, arguing that the National Treasury followed all legal steps in preparing the fuel levy adjustment. He accused the EFF of trying to block the broader national budget process, which has already faced multiple revisions due to disagreements within the coalition government.
“If the court blocks this tax increase, it will create a revenue gap of 3.5 billion rand (about $196 million),” the minister warned. “That money will then have to be recovered through borrowing, higher taxes elsewhere, or cuts to essential government services.”
Political Tensions Mount in Coalition Government
The latest controversy over the fuel levy comes just weeks after the finance minister was forced to drop a plan to increase value-added tax (VAT), following intense opposition from the Democratic Alliance (DA), the second-largest party in the governing coalition.
Analysts say the finance minister is facing increasing pressure to strike a balance between economic reform and political survival, as the coalition government tries to navigate South Africa’s fragile fiscal state.
Economy at a Crossroads
With public debt already soaring, many investors and credit rating agencies are keeping a close watch on South Africa’s budget discipline. The economy has faced low growth for over a decade, and the need to raise revenue without stifling economic activity has become a serious challenge for policymakers.
“The markets want to see credible steps to rein in spending and hit revenue targets,” said a financial analyst in Johannesburg. “Court rulings that block tax measures, even unpopular ones, will make it harder for the Treasury to do its job.”
The High Court is expected to decide soon whether to grant the EFF’s request to suspend the fuel levy hike. A ruling in favour of the EFF could trigger further delays in the implementation of key fiscal policies and increase tensions within the governing coalition.
