Finance Minister Prolongs Short-Term Initiatives to Combat Fuel Price Increases
Pretoria – Finance Minister Enoch Godongwana has revealed that the reduction of R3 per litre in the general fuel levy for petrol will be continued until Tuesday, 2 June 2026. During this time, the levy on diesel will be cut from R0.93 per litre to R0.00 per litre.
“Considering the anticipated significant hikes in diesel prices, the Minister of Finance suggests raising the temporary relief for diesel by 93 cents to R3.93 per litre, bringing the levy down to zero from Wednesday, 6 May 2026, to Tuesday, 2 June 2026,” stated 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 stay at R1.10 per litre, while the diesel levy will be reduced from R0.93 per litre to R0.00 per litre.”
“In June 2026, the Minister of Finance recommends that the level of relief be halved as part of a gradual phase-out before July.”
The joint statement further indicated: “Consequently, the relief from the general fuel levy will be decreased 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 adjustment will raise the general fuel levy for petrol 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 noted that starting from 1 July, the general fuel levy for petrol will revert to R4.10 per litre, while the diesel levy will go back to R3.93 per litre.
The estimated cost of the temporary fuel levy relief from April to June 2026 is projected to be R17.2 billion in lost tax revenue.
This fuel levy relief initiative is intended to be revenue-neutral and will be financed through a mix of unexpected higher tax revenue and underspending, ensuring no impact on the fiscal framework established by Parliament after the 2026 Budget.
The Department of Mineral and Petroleum Resources announced that it has begun a review of the pricing formula, which will shape how fuel prices are managed moving forward.
“It is also essential to acknowledge that under the Self-Adjusting Slate mechanism, the under-recovery of petroleum product importers needs to be addressed. Thus, the Slate levy on petrol and diesel will undergo adjustments for the month of May,” the statement added.
In response to the extension of the fuel levy relief for another month, GOOD Secretary-General Brett Herron commented: “While we appreciate the ministers’ action regarding the fuel price issue, we have reservations about the proposed halving of the relief starting June 2026.”
“There is no certainty that the U.S. conflict with Iran will be resolved by that time, nor that crude oil prices will fall sufficiently to justify such adjustments to the temporary fuel levy relief.”