Fuel levy relief extended as Government moves to cushion motorists from rising petrol and diesel costs.
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The South African government has extended and expanded its temporary fuel levy relief measures in an effort to shield households and businesses from continued fuel price pressures driven by the ongoing Middle East conflict.
In a joint announcement, the National Treasury and the Department of Mineral and Petroleum Resources confirmed that the temporary reduction in the general fuel levy, initially introduced in April, will remain in place through June, with phased adjustments before ending in July.
The departments said the original relief package, announced on March 31, was introduced to provide “limited short-term relief to households from rising fuel prices following the Middle East conflict.”
With international oil prices remaining elevated, government said further intervention had become necessary.
“To provide further relief and to address concerns of higher inflation and negative impacts on economic growth due to increasing fuel prices, the following relief measures are proposed for May and June 2026.”
Under the revised measures, the R3 per litre fuel levy reduction on petrol will be extended until June 2, 2026.
Diesel users will receive even greater relief, with the levy cut increasing by 93 cents to R3.93 per litre from May 6 to June 2, effectively reducing the diesel general fuel levy to zero during that period.
“The general fuel levy for diesel will decrease from R0.93 per litre to R0.00 per litre,” Treasury said.
From 3 June to 30 June, the relief will be scaled back as government begins phasing out the intervention.
For that month, petrol relief will be reduced to R1.50 per litre, while diesel relief will be lowered to R1.96 per litre.
The full fuel levy will be reinstated from July 1, with petrol returning to R4.10 per litre and diesel to R3.93 per litre.
Government estimates the total cost of the temporary relief measures from April through June at R17.2 billion in foregone tax revenue.
However, Treasury stressed that the intervention “is designed to be revenue neutral” and will be funded through “a combination of higher-than-expected tax revenue and underspending,” adding that the package “will not have an impact on the fiscal framework adopted by Parliament following the 2026 Budget.”
Officials also warned that motorists may still face additional price adjustments through the fuel pricing mechanism.
“It should also be noted that according to the Self Adjusting Slate mechanism the under recovery of importers of petroleum products must also be accommodated,” the statement noted, adding that “the Slate levy on petrol and diesel will also be adjusted for the month of May.”
Meanwhile, the Department of Mineral and Petroleum Resources said it has launched a broader review of South Africa’s fuel pricing formula.
“The Department of Mineral and Petroleum Resources has initiated a review of the formula whose conclusion will determine how fuel prices are regulated going forward.”
The extension comes as policymakers attempt to balance inflationary pressures, economic growth concerns and fiscal discipline amid volatile global energy markets.
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