South Africa Extends Fuel Levy Relief Until June 2026

By Echos News Editorial Team
Published: April 29, 2026

Motorists across South Africa will continue to benefit from temporary fuel levy relief until the end of June 2026, as government cushions households and businesses against surging global oil prices.

Background: Why Relief Was Needed

The National Treasury and Department of Mineral and Petroleum Resources announced the extension following sustained pressure on global oil markets due to the Middle East conflict. Rising fuel costs threatened to push inflation higher and slow economic growth, prompting government to act decisively.

Petrol Levy Reduction

Petrol users will continue to enjoy a R3 per litre reduction in the general fuel levy until 2 June 2026. This keeps the levy at R1.10 per litre, offering short-term relief to households and commuters.

Diesel Levy Suspension

Diesel relief has been deepened, with the levy reduced by an additional 93 cents, bringing the total cut to R3.93 per litre. From 6 May to 2 June 2026, the diesel levy will effectively be zero, protecting transport, agriculture, and logistics sectors from crippling cost increases.

Phased Return in June

To ensure fiscal sustainability, the relief will be halved in June. Between 3 June and 30 June 2026, petrol levy relief will drop to R1.50 per litre, while diesel relief will be reduced to R1.96 per litre. From 1 July 2026, levies return to their normal levels of R4.10 per litre for petrol and R3.93 per litre for diesel.

Fiscal Impact and Neutrality

The extension will cost an estimated R17.2 billion in foregone tax revenue between April and June 2026. Treasury emphasized that the measure is fiscally neutral, funded through higher-than-expected tax revenue and underspending, ensuring no disruption to the 2026 Budget framework.

Future Fuel Price Mechanism Review

The Department of Mineral and Petroleum Resources is reviewing the formula used to calculate fuel prices, with conclusions expected by March 2027. Adjustments to the Slate levy will also be made to accommodate under-recovery by petroleum importers.

Impact on Motorists and Businesses

• Without relief, diesel prices would have surged by over R8 per litre in May.
• Petrol prices are still expected to rise by R1.76–R2.08 per litre, but relief cushions the blow.
• Diesel prices will climb by R4.50–R5.42 per litre, softened by the zero levy.

Conclusion

While the extension offers temporary breathing room, South Africans should prepare for higher costs from July unless global oil prices ease. The relief underscores government’s balancing act between protecting households and maintaining fiscal discipline.

Source: SAnews.gov.za

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