Johannesburg – From next month, the general fuel levy will increase by nine cents per litre for petrol and eight cents per litre for diesel.
The carbon fuel levy will rise by five cents per litre for petrol and six cents for diesel.
These increases were announced by Finance Minister Enoch Godongwana during his budget speech earlier this year.
Explaining how the transport costs sit at the heart of economic activity, Ashif Black, Country Representative for South Africa at inDrive said: “These adjustments, alongside an increase in the Road Accident Fund levy, translate into motorists paying roughly 21 cents more per litre overall once the changes take effect”.
Black added: “For policymakers balancing fiscal pressures, the increases may appear modest, but for the millions of South Africans who depend on fuel daily, the impact is cumulative.”
Black warned that when fuel prices rise, the effect ripples outward through supply chains, delivery services, and daily commuting.
“In an economy already facing persistent financial strain, even small shifts in input costs can carry significant consequences,” Black said.
“South Africans are entering this latest adjustment after several years of economic pressure, with analysts and consumer organisations warning that levy increases inevitably cascade through the broader economy.
“Higher transport costs influence everything from food prices to delivery fees and commuting costs, and the gig mobility sector is no different, where the pressure is felt directly.”
What the levy increase means for ride-hailing
inDrive said for ride-hailing drivers, fuel is often the single largest daily expense.
“When pump prices increase, drivers must either absorb the additional cost, work longer hours to maintain income or increase fares to remain financially viable,” Black said.
“None of these options are straightforward in a market where riders themselves are becoming more cost-conscious.”
Ride-hailing platforms have played a significant role in expanding mobility options across South Africa.
Many services rely on algorithm-driven pricing systems to calculate fares in real time.
“That being said, the inDrive platform operates differently, with a lower commission model that allows drivers to retain a larger share of each trip’s fare, giving them greater financial breathing room when costs increase,” Black said.
“Equally important, inDrive is built on a peer-to-peer model where drivers and passengers interact directly, negotiating fares in a fair and transparent way.”
Black explained that rather than relying solely on automated algorithms, this approach allows drivers to factor in real-world expenses, such as rising fuel prices, while giving passengers the flexibility to choose options that best fit their budgets.
However, when operating costs such as fuel fluctuate sharply, even inDrive drivers often have limited direct control over how those costs are reflected in fares.
The knock-on effect for businesses and deliveries
Across South Africa, many small and medium-sized enterprises rely on flexible logistics services to move goods between suppliers, warehouses and customers.
Black said platforms such as inDrive Freight support businesses that cannot afford to operate their own vehicle fleets.
When fuel costs rise, those businesses face a myriad of difficult trade-offs, including an increase in delivery prices.
For companies operating on tight margins, every additional rand spent on fuel directly affects profitability.
The result is a chain reaction across the economy.
Transport becomes more expensive, goods become more expensive, and consumers ultimately absorb part of the cost.
“While the government’s fiscal challenges are well understood, I cannot overstate the reality that policies that affect fuel prices inevitably shape the livelihoods of workers in mobility-dependent sectors,” Black said.
