Treasury announces extension of short-term fuel relief measures

Key topics:Govt extends fuel levy cut to ease rising fuel pricesDiesel levy cut to zero; phased relief planned by JuneR17.2bn cost; recovery planned to keep budget neutral.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..Issued by National Treasury and Department of Mineral and Petroleum Resources Date: 28 April 2026.On 31 March 2026 the Minister of Finance and the Minister of Mineral and Petroleum Resources jointly announced a temporary reduction in the general fuel levy of R3 per litre from Wednesday 1 April 2026 to Tuesday 5 May 2026 to provide limited short-term relief to households from rising fuel prices following the Middle East conflict. The relief measure was designed to be fiscally neutral, and the government will implement mechanisms to recoup the foregone revenue within the fiscal framework approved during the 2026 Budget.Since this announcement, the continuation of the Middle East conflict has resulted in consistent pressure on global oil prices which has led to increases in domestic fuel prices. To provide further relief and to address concerns of higher inflation and negative impacts on economic growth due to increasing fuel prices, the following relief measures are proposed for May and June 2026. The extension of the temporary reduction in the general fuel levy: a. The Minister of Finance proposes that the R3 per litre reduction in the general fuel levy for petrol is extended until Tuesday 2 June 2026. Given the large expected increases in the price of diesel, the Minister of Finance proposes that the temporary relief for diesel is increased by 93 cents to R3.93 per litre, reducing the levy to zero, from Wednesday 6 May 2026 to Tuesday 2 June 2026. The general fuel levy for petrol will remain at R1.10 per litre and the general fuel levy for diesel will decrease from R0.93 per litre to R0.00 per litre. b. For the month of June 2026, the Minister of Finance proposes that the level of relief is halved to phase out the relief before July. As a result, the amount of relief from the general fuel levy will be reduced to R1.50 per litre for petrol and R1.96 per litre for diesel, effective from Wednesday 3 June 2026 to Tuesday 30 June 2026. This will increase the general fuel levy for petrol from R1.10 per litre to R2.60 per litre and increase the general fuel levy for diesel from R0.00 per litre to R1.97 per litre..c. From 1 July onwards, the general fuel levy for petrol will return to R4.10 per litre and the general fuel levy 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 foregone tax revenue.The fuel levy relief measure is designed to be revenue neutral and will be funded through a combination of higher-than-expected tax revenue and underspending and will not have an impact on the fiscal framework adopted by Parliament following the 2026 Budget. The Department of Mineral and Petroleum Resources has initiated a review of the formula whose conclusion will determine how fuel prices are regulated going forward.It should also be noted that according to the Self Adjusting Slate mechanism the under recovery of importers of petroleum products must also be accommodated, and as such the Slate levy on petrol and diesel will also be adjusted for the month of May.

Treasury announces extension of short-term fuel relief measures

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