The government’s move to postpone the increase in petrol and diesel tax that was expected to be increased next month has been accepted. The government has postponed to June this year, the increase in diesel and petrol so that people can breathe. The announcement was made by the Ministry of Treasury as well as the Ministry of Minerals.
The organization Motor Industry Staff Association (MISA), has welcomed the reduction of a liter of petrol by R3. It also accepted the reduction of a liter of diesel by R3.93 until June 2, 2026.
“We accept this decision as it will ease the burden on workers, businesses and the transport sector. We are disappointed that people who use paraffin, they did not benefit from this movement when there are many people who use it.”
MISA said that paraffin is expected to increase by R5 per liter.
“Poor people will still have to bear the brunt, especially those who use paraffin. They rely on it to cook, heat their houses and do other jobs with it. We urge the government to take care of those who use paraffin.”
Cosatu, the trade union federation, has welcomed the non-increase of this tax. Mr. Matthew Parks of Cosatu, said that this step will help the workers and people who would have been affected by everything.
He said this was caused by the ongoing war in the Middle East, and he said that even if the war ends, it will take time for the prices of petrol and diesel to return to normal.
“We are worried about the increase in kerosene, as there is no relaxation in it. The workers are swimming in debts so they would have to face an uphill battle with the increase in petrol and oil prices. There will be an increase in fares while wages will not increase that much.”
He said that other plans need to be made to increase the allowance for the poor, the provision of parcels to those who receive the allowances, to support agricultural programs and to consult with Eskom regarding the reduction of electricity.
“The private sector must commit to not laying off workers. Workers must be given leave to not pay insurance. The government must make plans to boost the economy to create jobs at this time,” he said.
The government stated that this move to not increase petrol and diesel, will make it impossible to collect R17.2 billion, in a few months, from April to June this year.
“From July 1, 2026, the tax on a liter of petrol will go back to R4.10 a litre, and on diesel it will go back to R3.93 a litre.”
At the beginning of the month, the Ministry of Minerals said that it is reviewing the price of petrol which is a plan that is expected to be completed in March of next year.