National Treasury & the Department of Petroleum & Mineral Resources have announced a temporary R3 cut to the general fuel levy to help reduce the impact of rising fuel prices. This will bring some relief to motorists. The price of Brent crude oil has increased sharply from about 69.08 US Dollars to at least 93.67 USD. This happened because of growing conflict in the Middle East which has put pressure on supply chains around the world and pushed up local fuel prices. Recent data from the Central Energy Fund Group shows that fuel price increases in April 2026 could reach historic highs.
National Treasury & the Department of Mineral and Petroleum Resources held discussions to find ways to provide short-term relief to consumers while keeping the fuel supply system stable and sustainable. The agreed plan includes an immediate intervention for the next month and a broader set of measures to support households & important sectors of the economy. A joint media statement was released on Tuesday March 31. The departments said the package of measures will roll out in two phases.
Phase one includes the following: The Minister of Finance proposes that the general fuel levy is temporarily reduced by R3 per litre from Wednesday 1 April 2026 to Tuesday 5 May 2026. This will lower the general fuel levy for petrol from R4.10 per litre to R1.10 per litre and reduce the general fuel levy for diesel from R3.93 per litre to R0.93 per litre for one month. These amounts do not include other levies such as the Road Accident Fund levy & the Carbon Fuel Levy.
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The partial reduction in the fuel levy is expected to cost around R6 billion in lost tax revenue for the one-month period. The relief measure will be reviewed on a monthly basis for the following two months. The relief measure is designed to be fiscally neutral & the government will use mechanisms to recover the lost revenue within the fiscal framework approved during the 2026 Budget.
When making this decision the Minister of Finance tried to balance the socio-economic impact on the country and welfare impact on South African consumers with regard to food and transport inflation against the fiscal objectives announced in the February Budget. Government also wants to assure the public that there is enough fuel supply in the country to meet current and projected demand.
Reports of shortages in certain areas are mostly due to local distribution and logistical problems caused by panic buying rather than a lack of national fuel stocks. These issues are expected to resolve themselves in the coming days. Motorists and businesses should purchase fuel responsibly & avoid unnecessary stockpiling.
Phase two of the broader package measures includes:
- The Minister of Mineral and Petroleum Resources will continue working to review fuel pricing over the medium term.
- Work is underway on a broader package of measures to support households & key sectors of the economy.
- More details on additional support measures will be announced later.
- Government remains committed to balancing economic sustainability with the need to protect consumers.
