(Photo: Christine Oelofse/Maroela Media)
The relief in the fuel price increase granted by the government was welcomed from various quarters on Tuesday.
Enoch Godongwana, the finance minister, announced shortly before that the fuel levy would be temporarily reduced by R3 per litre.
According to a joint statement from the National Treasury and the Department of Mineral and Petroleum Resources, the conflict in the Middle East has substantially increased the risks to global energy markets, putting significant upward pressure on domestic fuel prices.
The treasury and the department have investigated various measures to offer short-term relief to consumers, while maintaining a stable and sustainable fuel supply system.
Godongwana proposed that the general fuel levy be temporarily reduced by R3 per liter from Wednesday 1 April to Tuesday 5 May.
This will reduce the general fuel levy for petrol from R4,10 per liter to R1,10 per liter and the general fuel levy for diesel from R3,93 per liter to R0,93 per liter for one month.
These amounts exclude the charges for the Road Accident Fund and carbon.
It is estimated that the partial reduction in the fuel levy will mean approximately R6 billion in lost tax revenue for the one month period. The relief measure will be reevaluated monthly for the next two months.
Minister Enoch Godongwana (Photo: Jairus Rabbit/GCIS)
According to the statement, Godongwana apparently attempted to balance the socio-economic impact on the country and the welfare impact on South African consumers, specifically in relation to food and transport inflation, with the fiscal objectives announced in the February budget.
The government has also re-assured people that there is sufficient fuel stock in the country to meet the current and projected demand.
“Reports of shortages in certain areas are largely due to localized distribution and logistical challenges driven by panic buying, rather than a lack of national fuel supplies. These are expected to self-recover in the next few days,” the statement said.
Motorists and businesses are encouraged to purchase fuel responsibly and avoid its unnecessary storage.
The relief was quickly welcomed.
Theuns du Buisson, economic researcher of the Solidarity Research Institute (SNI), says the institution trusts that this decision was not taken lightly and that consumers and taxpayers will not be harmed in the coming months when the lost tax income must be recovered.
“We hope that other methods can be found to collect the R6 billion, such as recovering it from the equalization fund or other emergency funds. Consumers are already under tremendous pressure and we call on the minister to do everything in his power not to put any further pressure on households and businesses,” says Du Buisson.
We welcome the ANC led governments intervention with regards to the rising fuel costs because of the war in the Middle East. By cutting the fuel levy by R3 it will buffer the citizens from rising fuel and food prices. This is what a government that cares and is responsive to the…
— ANC SECRETARY GENERAL | Fikile Mbalula (@MbalulaFikile) March 31, 2026
Dr. Mark Burke, DA MP and the party’s spokesperson on finances, says that the DA already asked for exactly this step last week.
“The DA proposed a reduction of R3.17 with a funded plan and Godongwana came close enough with his announcement on Tuesday.”
Burke says the DA would also like to know how the relief will ultimately be financed.
“We cannot afford to take on more national debt. Nor can taxpayers be expected to fund this relief through another form of taxation. The only viable route to fund this relief is to make spending more efficient,” says Burke.
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