Pres. Cyril Ramaphosa (Photo: GCIS)
President Cyril Ramaphosa says the government’s decision to lower the fuel levy was a direct response to the global economic pressure caused by the conflict in the Middle East.
Ramaphosa explained in an interview that the war has a “devastating impact” on many countries’ economies and that South Africa is not spared from it. He specifically referred to the sharp rise in oil and fuel prices, which in turn pushes up food prices and the general cost of living.
“We are looking at interventions to protect South Africans from the impact,” Ramaphosa said, adding that the finance minister had already acted to provide some relief.
The finance minister, Enoch Godongwana, announced earlier that the fuel levy will be reduced by R3 per litre. The reduction applies from April and is part of efforts to ease pressure on consumers amid rising fuel costs.
Ramaphosa emphasized that the increase in fuel prices does not only affect motorists, but has a wider impact on the economy.
“The rise in oil and petrol prices affects us all. We are now seeing that food prices are also starting to rise,” he said.
He said the government’s intervention is aimed at serving as a buffer for South Africans while the international situation continues.
Although the relief is temporary, Ramaphosa indicated that further decisions on possible measures could be considered, depending on how the situation develops.
The president also reiterated South Africa’s position on the conflict in the Middle East and called for an immediate and permanent ceasefire.
“All wars eventually come to an end, and the best way is through negotiation,” he said.
He emphasized that a sustainable solution can only be achieved if parties sit down to find a lasting solution.
The ongoing was in the Middle East is negatively affecting many economies around the world. We are looking at interventions to cushion South Africans against the impact. pic.twitter.com/sE9limNQEh
— Cyril Ramaphosa ???????? (@CyrilRamaphosa) April 7, 2026
Enlightenment comes at a price
Although the reduction of the fuel levy brings relief to consumers, it also means that the state is giving up billions of rand in revenue. The government is expected to collect around R15 billion less from the fuel levy, while at the same time it is already under pressure to stabilize its fiscal position.
Experts warn that such interventions are ultimately borne by taxpayers, either through increased taxes elsewhere or through tighter fiscal measures. Read more.