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The Minister for National Treasury Mr Enoch Godongwana has announced a proposed extension for fuel prices relief following the continued tensions in the Middle East putting pressure on global fuel prices.
Godongwana first made the announcement to cushion households from rising petrol prices by reducing fuel levy by R3 per litre until 5 May 2026. This was meant to be a temporary measure until the de-escalation in the Middle East; however, the conflict seems to rage on as the US, Israel and Iran cannot come to an agreement to end the war and open the Strait of Hormuz.
According to the Minister, the extended relief measure from April to June 2026 will cost the country an estimated R17.2 billion in tax revenue.
Godongwana proposes that the R3 per litre reduction in the general fuel levy for petrol is extended until Tuesday 2 June 2026. Given the large expected increases in the price of diesel, the Minister of Finance proposes that the temporary relief for diesel is increased by 93 cents to R3.93 per litre, reducing the levy to zero, from Wednesday 6 May 2026 to Tuesday 2 June 2026. The general fuel levy for petrol will remain at R1.10 per litre and the general fuel levy for diesel will decrease from R0.93 per litre to R0.00 per litre.
For the month of June 2026, the Minister proposes that the level of relief is halved to phase out the relief before July. As a result, the amount of relief from the general fuel levy will be reduced 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 will increase the general fuel levy for petrol from R1.10 per litre to R2.60 per litre and increase the general fuel levy for diesel from R0.00 per litre to R1.97 per litre.
From 1 July onwards, the general fuel levy for petrol will return to R4.10 per litre and the general fuel levy for diesel will return to R3.93 per litre.
“The estimated cost of the temporary fuel levy relief from April to June 2026 is R17.2 billion in foregone tax revenue. The fuel levy relief measure is designed to be revenue neutral and will be funded through a combination of higher-than-expected tax revenue and under-spending and will not have an impact on the fiscal framework adopted by Parliament following the 2026 Budget.
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. 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, and as such the Slate levy on petrol and diesel will also be adjusted for the month of May,” said Minister Enoch Godongwana.
