In a decisive move to temper the impact of surging fuel prices stemming from ongoing conflicts in the Middle East, the South African National Treasury has announced an extension of the fuel levy short-term relief. This development comes in light of escalating global fuel costs that have placed a significant strain on transport operations costs across the nation.
The Minister of Finance, Enoch Godongwana, proposed that the current reduction of R3 per litre in the general fuel levy for petrol be extended until Tuesday, June 2, 2026. Originally implemented on April 1,2026, this measure was expected to end on 5 May.
“Given the large expected increases in the price of diesel, the Minister of Finance has proposed that the temporary relief for diesel is increased by 93 cents to R3.93 per litre, effectively reducing the levy to zero from 6 May 2026 until 2 June 2026,” stated the National Treasury in an official statement. “The general fuel levy for petrol will remain at R1.10 per litre, while the general fuel levy for diesel will decrease from R0.93 per litre to R0.00 per litre.”
Diesel prices have been prioritised amid surging global demand and supply chain disruptions linked to international conflicts. This relief strategy reflects the government’s commitment to alleviating financial pressures on the local road freight industry, whose operations rely heavily on fuel.
However, the reprieve is not permanent. For June 2026, the Minister has proposed a phasing down of the relief. The level of support will be halved, decreasing the general fuel levy relief from R3 per litre to R1.50 per litre for petrol and R1.96 per litre for diesel, effective from June 3 to June 30, 2026. Consequently, this adjustment will increase the general fuel levy for petrol from R1.10 per litre to R2.60 per litre, and for diesel, from R0.00 per litre to R1.97 per litre.
Looking ahead, from July 1, 2026 onward, the South African government plans to reinstate the general fuel levy rates to pre-relief levels, with petrol returning to R4.10 per litre and diesel to R3.93 per litre. The estimated cost of this temporary fuel levy relief from April to June 2026 stands at R17.2 billion in foregone tax revenue, highlighting the government’s commitment to supporting South Africans amid unprecedented economic pressures.