EFF's challenge to fuel levy hike dismissed

The Western Cape High Court has dismissed the EFF’s urgent application to interdict the 4% fuel levy increase, which takes effect on Wednesday.

The EFF had filed the urgent court case, challenging Finance Minister Enoch Godongwana’s decision to increase the General Fuel Levy. The levy increased by 16c per litre on petrol and 15c per litre on diesel.

The EFF through Advocate Mfesane Ka-Siboto had argued that the increase would unfairly burden the working class and poor, worsening inequality and violating constitutional rights.

He said the minister’s decision lacked both rationality and parliamentary oversight.

Ka-Siboto further told the court, in accordance with the Money Bills Amendment Procedure and Related Matters Act, only a law could serve as the proper instrument for the minister to impose a tax.

The EFF claimed that Godongwana overstepped his powers by announcing the fuel levy increase in his Budget speech, without parliamentary approval.

"What is clear is that the minister is imposing tax," Ka-Siboto said, citing the Money Bills Amendment Procedure and Related Matters Act as the legal framework Godongwana should have followed.

The EFF also argued that the fuel levy increase is both economically unjust and unconstitutional.

"It deepens inequality and undermines access to essential goods and services. We are committed to fighting the fuel levy increase in court and in parliament," the party said.

However, Advocate Kameel Premhid, representing the national Treasury, argued that the fuel levy increase is not a tax but rather a regulation charge. 

Premhid maintained that the minister has always had the power to adjust fuel levies as part of the budgetary process.

"Regulatory charges bring in money, so they might raise revenue. But that doesn’t make it a tax, and just because a tax also raises revenue, the two are not the same thing."

The Western Cape High Court's dismissal of the EFF's bid means the fuel levy increase will go ahead as planned.

The EFF may still pursue its challenge to the fuel levy increase in Part B of its application, which seeks to review and set aside Godongwana's decision.

Meanwhile the Department of Minerals and Energy has confirmed that fuel prices will decrease from today, despite the hike in the General Fuel Levy.

Providing reasons for the fuel adjustments, the department said the average Brent Crude oil price decreased from 66.40 US Dollars (USD) to 63.95 USD under the period under review while the Rand appreciated on average, against the US Dollar (from 18.84 to 18.11 Rand per USD) . 

Based on current local and international factors, the fuel prices have been adjusted as follows:

- Petrol 93 and 95 (ULP & LRP) is down by 5c per litre 

- Diesel (0.05% sulphur and 0.005% sulphur) has dropped by 36c per litre

- Illuminating Paraffin (wholesale) is down by 56c per litre

| Additional Reporting Staff Reporter

Cape Times