(Photo: Nico Strydom/Maroela Media)
The National Treasury announced on Tuesday the extension of the temporary reduction in the general fuel levy.
Enoch Godongwana, the finance minister, says the reduction of R3 per liter in the general fuel levy that was introduced in April will be extended until 2 June.
Given the large expected increases in the price of diesel, Godongwana proposed that the temporary relief for diesel be increased by 93 cents to R3.93 per litre, from Wednesday 6 May to Tuesday 2 June.
The general fuel charge for petrol will remain at R1.10 per liter and the general fuel charge for diesel will drop from R0.93 per liter to R0.00 per litre.
Godongwana says this relief measure is designed to be fiscally neutral and the government will implement mechanisms to recover the loss of revenue within the fiscal framework approved during the 2026 budget.
He also suggested phasing out the relief before July.
As a result, the amount of relief from the general fuel levy in June will be reduced to R1.50 per liter for petrol and R1.96 per liter for diesel, effective from Wednesday 3 June to Tuesday 30 June.
This will increase the general fuel levy for petrol from R1.10 per liter to R2.60 per liter and the general fuel levy for diesel from R0.00 per liter to R1.97 per litre.
From 1 July, the general fuel charge for petrol will return to R4.10 per liter and the general fuel charge 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 lost tax revenue.
Fuel Price Increase Relief Measures pic.twitter.com/UMvH3TDIIB
— Department of Mineral and Petroleum Resources (@DMPR_ZA) April 28, 2026
Godongwana says the fuel levy relief measure is designed to be revenue neutral and will be funded by a combination of higher than expected tax revenue and underspending and will not have an impact on the fiscal framework adopted by parliament after the 2026 budget.
The Department of Mineral and Petroleum Resources has started a review of the formula, the conclusion of which will determine how fuel prices are regulated going forward.