Motorists get relief as government slashes fuel levy for one month

Godongwana

Cape Town – Finance Minister Enoch Godongwana and Mineral and Petroleum Resources Minister Gwede Mantashe have announced a temporary fuel levy reduction to cushion South Africans from steep fuel price increases driven by global oil market volatility.

In a joint statement issued on Tuesday, government confirmed that the general fuel levy will be cut by R3 per litre for one month, from 1 April to 5 May 2026, as part of urgent short-term relief measures.

“The escalation of conflict in the Middle East has materially increased risks to global energy markets, placing significant upward pressure on domestic fuel prices,” the statement said.

The reduction will lower the general fuel levy on petrol from R4.10 to R1.10 per litre, and on diesel from R3.93 to R0.93 per litre, excluding other charges such as the Road Accident Fund and carbon fuel levies.

Government estimates the intervention will cost around R6 billion in foregone revenue but said the measure is designed to be temporary and fiscally neutral.

“The relief measure will be re-evaluated on a monthly basis for the following two months,” the ministers said.

Officials said the decision was taken to balance the economic strain on households with fiscal stability, particularly amid rising food and transport costs.

“In reaching this decision, the Minister of Finance sought to balance the socio-economic impact on the country and welfare impact on South African consumers… with the fiscal objectives announced in the February Budget,” the statement read.

Government also moved to reassure the public about fuel availability, amid reports of shortages in some areas.

“Government further wishes to assure the public that there is sufficient fuel supply in the country to meet current and projected demand,” the statement said.

It added that disruptions were largely due to panic buying and logistical challenges rather than a national shortage.

Further interventions

“Reports of shortages in certain areas are largely due to localised distribution and logistical challenges driven by panic buying rather than a lack of national fuel stocks and these are expected to self-correct in the next coming days.”

Motorists and businesses were urged to avoid stockpiling and purchase fuel responsibly.

Looking ahead, government said further interventions are being considered.

“The Minister of Mineral and Petroleum Resources will continue work to review fuel pricing over the medium term,” the statement said.

“Work is underway on a broader package of measures to support households and key sectors of the economy. Further details on additional support measures will be announced in due course.”

Government said it remains committed to balancing economic sustainability with the need to protect consumers from rising fuel costs.

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