South Africa’s latest Budget Speech has once again placed fuel costs at the centre of the national economic conversation. Presenting the 2026 National Budget, Finance Minister Enoch Godongwana confirmed that the government would raise several fuel-related levies as of April 2026. As he told Parliament, “the general fuel levy will go up by 9 cents per litre for petrol and 8 cents per litre for diesel. The carbon fuel levy will go up by 5 cents per litre for petrol and 6 cents for diesel.” 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.
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.
Transport costs sit at the heart of economic activity. 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.
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
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. 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.
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. 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. 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.
Ride-hailing drivers, couriers and logistics partners are an increasingly important part of South Africa’s digital economy, providing services that keep cities functioning. They support small businesses and offer income opportunities in a labour market that remains under increasing pressure.
As policymakers continue to consider transport policy and fiscal adjustments, it is important that the realities of this growing mobility workforce remain part of the conversation. Ensuring that drivers can earn sustainably while riders can continue to move around their cities is, as such, an economic priority for the country as a whole.
Written by Ashif Black, Country Representative for South Africa at inDrive