Pretoria: National Treasury and the Department of Petroleum and Mineral Resources have announced a temporary R3 reduction to the general fuel levy to mitigate the effects of rising fuel prices – bringing some relief to motorists. The price of Brent crude oil has seen a sharp increase – jumping from about 69.08 US Dollars (USD) to at least 93.67 USD – due to rising conflict in the Middle East, which has strained supply chains globally and consequently triggered increased local fuel prices.
According to South African Government News Agency, recent data from the Central Energy Fund Group suggests historically high fuel price increases from April 2026. Consultations have been held between the National Treasury and the Department of Mineral and Petroleum Resources to explore measures to provide short-term relief to consumers while maintaining a stable and sustainable fuel supply system. The agreed approach consists of an immediate intervention for the next month, and a broader package of measures to support households and key sectors of the economy, a joint media statement on Tuesday read.
All grades of petrol are set to rise by R3.06 a litre on Wednesday, and the price of diesel will also rise by between R7.37 per litre and R7.51 per litre. According to the departments, the package of measures will be implemented in two phases.
Phase one includes a temporary reduction in the general fuel levy by R3 per litre from Wednesday 1 April 2026 to Tuesday 5 May 2026. This will bring down the general fuel levy for petrol from R4.10 per litre to R1.10 per litre and 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. The partial reduction in the fuel levy is estimated to cost around R6 billion in foregone tax revenue for the one-month period. The relief measure will be re-evaluated monthly for the following two months.
The relief measure aims to be fiscally neutral, with the government implementing mechanisms to recoup the foregone revenue within the fiscal framework approved during the 2026 Budget. The decision seeks 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.
The government assures 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. These are expected to self-correct in the coming days. Motorists and businesses are encouraged to purchase fuel responsibly and avoid unnecessary stockpiling.
Phase two of the broader package measures includes the continued efforts of the Minister of Mineral and Petroleum Resources to review fuel pricing over the medium term. Work is underway on a broader package of measures to support households and key sectors of the economy, with further details on additional support measures to be announced in due course. The government remains committed to balancing economic sustainability with the need to protect consumers, the statement concluded.