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To cushion customers from the impact of historic fuel prices increases due to the escalation in conflict in the Middle East, the Minister for Treasury in South Africa Mr Enoch Godongwana announced a temporary relief for consumers.
Godongwana said during a media briefing at the South African Investment Conference (SAIC) taking place in Sandton, Johannesburg, his department will reduce fuel levy by R3 to cushion customers, however, this will cost government fuel tax revenue of up to R6 billion. The temporary intervention will be in place for up to end of April; in the meantime, both the Department of Mineral and Petroleum Resources and Treasury will search for other ways to bring relief to South African citizens.
The Minister for Mineral and Petroleum Resources Mr Gwede Mantashe announced fuel prices adjustment for the month of April 2026, which took effect at midnight; the prices were adjusted as follows:
- Petrol 93 (ULP & LRP): Three Rands and six-cents per litre (R 3.06 per litre) increase.
- Petrol 95 (ULP &LRP): Three Rands and six-cents per litre (R 3.06 per litre) increase.
- Diesel (0.05% sulphur): Seven Rands and thirty-seven cents per litre (R7.37 per litre) increase.
- Diesel (0.005% sulphur): Seven Rands and fifty-one cents per litre (R7.51 per litre) increase.
- Illuminating Paraffin (wholesale): Eleven Rands and sixty-seven cents per litre (R11.67 per litre) increase.
- SMNRP for IP: Fifteen Rands and sixty cents per litre (R15.60 per litre) increase.
- Maximum Retail Price of LPGas: One Rand and eight cents per kilogram (R1.08 per kg) increase and One Rand and twenty-three cents per kilogram (R1.23 per kg) increase in the Western Cape.
Godongwana said his department has limited power to influence the prices of fuel, as such; Treasury only has influence on fuel levy. To cushion the blow, the Minister said he will have to scrap around his fiscal framework to balance the R6 billion loss. He said it is likely that he might reduce the budget of the Department of Education and Health for they are the ones with large budgets.
The Department of Mineral and Petroleum Resources and Treasury announced their joint initiative for temporary relief as follows:
1. Phase 1: A temporary reduction in the general fuel levy and addressing fuel security concerns:
a. The Minister of Finance proposes that the general fuel levy is temporarily reduced by R3 per litre from Wednesday 1 April 2026 to Tuesday 5 May 2026. This will reduce the general fuel levy for petrol from R4.10 per litre to R1.10 per litre and reduce the general fuel levy for diesel from R3.93 per litre to R0.93 per litre for one month. These amounts exclude other levies such as the Road Accident Fund levy and the Carbon Fuel Levy.
b. It is estimated that the partial reduction in the fuel levy will cost around R6 billion in foregone tax revenue for the one-month period. The relief measure will be re evaluated on a monthly basis for the following two months.
c. The relief measure is designed to be fiscally neutral, and the government will implement mechanisms to recoup the foregone revenue within the fiscal framework approved during the 2026 Budget.
d. 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, specifically regarding food and transport inflation, with the fiscal objectives announced in the February Budget.
a. Government further wishes to assure the public that there is sufficient fuel supply in the country to meet current and projected demand. 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 are encouraged to purchase fuel responsibly and avoid unnecessary stockpiling.
Phase 2: Broader package of measures:
a. The Minister of Mineral and Petroleum Resources will continue work to review fuel pricing over the medium term.
b. 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 remains committed to balancing economic sustainability with the need to protect consumers,” said the joint statement.
