The National Treasury and the Department of Mineral and Petroleum Resources confirmed that the temporary reduction in the general fuel levy has been extended to June 2026.
On 31 March 2026, the Minister of Finance and the Minister of Mineral and Petroleum Resources announced a reduction of R3 per litre (US$0.16) in the general fuel levy from 1 April 2026 to 5 May 2026. The measure was introduced to provide short-term relief from rising fuel prices linked to the Middle East conflict and was designed to be fiscally neutral.
"To provide further relief and to address concerns of higher inflation and negative impacts on economic growth due to increasing fuel prices, the Minister of Finance proposes that the R3 per litre reduction in the general fuel levy for petrol is extended until Tuesday, 2 June," the departments said.
From 6 May to 2 June 2026, the general fuel levy for petrol will remain at R1.10 per litre, while the levy for diesel will be reduced from R0.93 per litre to R0.00 per litre. Relief on diesel is increased by 93 cents to R3.93 per litre during this period.
For June 2026, the level of relief will be reduced. From 3 June to 30 June, the fuel levy reduction will be R1.50 per litre for petrol and R1.96 per litre for diesel. This will increase the general fuel levy for petrol to R2.60 per litre and for diesel to R1.97 per litre.
From 1 July 2026, the general fuel levy will return to R4.10 per litre for petrol and R3.93 per litre for diesel.
The departments stated that the continuation of the Middle East conflict has placed pressure on global oil prices, contributing to increases in domestic fuel prices.
"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 departments said.
The Department of Mineral and Petroleum Resources has initiated a review of the fuel price formula, which will determine how fuel prices are regulated. The Self-Adjusting Slate mechanism will also be applied, with the slate levy on petrol and diesel adjusted to account for under-recovery by importers of petroleum products.
For more information:
South African Government
Email: [email protected]
www.gov.za
