Finance Minister Extends Short-Term Measures to Address Rising Fuel Prices

Pretoria – Finance Minister Enoch Godongwana has announced that the R3 per litre reduction in the general fuel levy for petrol will be extended until Tuesday, 2 June 2026. During this period, the levy on diesel will also be eliminated, dropping from R0.93 per litre to R0.00 per litre.

“Given the expected significant increases in diesel prices, the Minister of Finance proposes raising the temporary relief for diesel by 93 cents to R3.93 per litre, effectively reducing the levy to zero from Wednesday, 6 May 2026, to Tuesday, 2 June 2026,” said a joint announcement from the National Treasury and the Department of Mineral and Petroleum Resources on Tuesday, 28 April 2026.

“The general fuel levy for petrol will remain at R1.10 per litre, while the levy on diesel will be reduced entirely to R0.00 per litre.”

“In June 2026, the Minister of Finance plans to halve the level of relief as part of a gradual phase-out leading up to July.”

The joint statement further mentioned: “As a result, relief from the general fuel levy will decrease to R1.50 per litre for petrol and R1.96 per litre for diesel, effective from Wednesday, 3 June 2026, to Tuesday, 30 June 2026.”

“This change will result in the general fuel levy for petrol increasing from R1.10 per litre to R2.60 per litre, and for diesel, from R0.00 per litre to R1.97 per litre.”

The statement also indicated that starting from 1 July, the general fuel levy for petrol will revert to R4.10 per litre, while the diesel levy will return to R3.93 per litre.

The estimated cost of the temporary fuel levy relief from April to June 2026 is projected to result in R17.2 billion in lost tax revenue.

This fuel levy relief initiative aims to be revenue-neutral and will be funded through a combination of unexpectedly higher tax revenue and underspending, ensuring there is no impact on the fiscal framework established by Parliament following the 2026 Budget.

The Department of Mineral and Petroleum Resources has announced the commencement of a review of the pricing formula, which will influence how fuel prices are managed in the future.

“It is important to recognize that the under-recovery of petroleum product importers needs to be addressed under the Self-Adjusting Slate mechanism. Therefore, adjustments to the Slate levy on petrol and diesel will be made for the month of May,” the statement added.

Responding to the fuel levy relief extension for an additional month, GOOD Secretary-General Brett Herron remarked: “While we appreciate the ministers’ decision concerning the fuel price situation, we have concerns regarding the proposed halving of the relief beginning in June 2026.”

“There is no guarantee that the U.S. conflict with Iran will be resolved by that time, nor that crude oil prices will decrease sufficiently to warrant such changes to the temporary fuel levy relief.”