Fuel Levy Hike Ahead and What This Means for Business
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On 4 June 2025, SARS has officially implemented the fuel levy increases announced in the Budget Speech of 21 May 2025. If your business touches fuel, buying, selling, using, or claiming refunds, this directly affects you.
What’s changing?
Fuel Levy Rates Are Up
Petrol: Rises by 16c/litre, from 385c/l to 401c/l
Diesel: Rises by 15c/litre, from 370c/l to 385c/l
These increases are detailed in Notice R.6275, which also updates Note 8 to reflect the new levy structure and carbon levy allocations.
Diesel Refund Adjustments
As per Notice R.6276, refund calculations for diesel used in farming, mining, forestry, and offshore sectors have been updated to match the new levy levels. For example:
Land-based operations: Eligible for a refund of 372c/litre on 80% of qualifying diesel purchases
Offshore vessels: Eligible for a refund of 603c/litre
Electricity generation (large scale): Refund of 410.5c/litre.
Who is Affected?
Fuel retailers and wholesalers
Farming, forestry, and mining operators
Maritime and offshore service providers
Power plants generating electricity for the grid
Transporters using diesel, especially rail and harbor operators.
