The government has moved to cushion April’s fuel price shock with a temporary levy cut – but how the cost will be recovered remains an open question.
In a joint statement issued on 31 March, Finance Minister Enoch Godongwana and Mineral and Petroleum Resources Minister Gwede Mantashe confirmed a R3 per litre reduction in the general fuel levy for both petrol and diesel, effective from 1 April to 5 May.
The move came in response to sharp increases in global oil prices and mounting pressure on domestic fuel costs. These pressures have been driven in part by escalating tensions involving Iran, Israel and the United States, which have disrupted shipping through the Strait of Hormuz – a key route for global oil supply – pushing prices higher and feeding through into South Africa’s import costs.
Relief now, recovery later
The temporary reduction lowers the general fuel levy to:
- 10 per litre for petrol
- 93 per litre for diesel
These amounts exclude other levies such as the Road Accident Fund levy and the Carbon Fuel Levy.
The government estimates the intervention will cost around R6 billion in foregone revenue for April.
The measure is explicitly designed to be temporary and fiscally neutral, with the government indicating that the foregone revenue will be recouped within the fiscal framework set out in the 2026 Budget. It has not yet detailed how this will be done, but has signalled that the approach seeks to balance immediate relief for consumers – particularly in mitigating food and transport inflation – with longer-term fiscal sustainability.
The media statement issued on 31 March indicated that the relief measure would be reviewed monthly over the following two months. However, speaking a day later at the announcement of SARS’s preliminary revenue collection results for the 2025/26 financial year, Finance Minister Enoch Godongwana suggested a narrower timeframe. He described the intervention as a “quantum leap” to cushion consumers for April, while the government considers its next steps.
“Mind you, that’s for April. While we are figuring out what are we going to fund, how much are we going to do that? We’ll figure it out as we move along.”
A holding position
The intervention forms part of a two-phase approach.
The first phase is the immediate levy reduction. The second – still under development – will look at:
- a review of fuel pricing over the medium term, and
- a broader package of measures to support households and key sectors of the economy.
The government has indicated that further details on these measures will be announced in due course.
It has also moved to reassure the public on supply, stating that there is sufficient fuel available nationally, and that reported shortages in some areas are largely the result of localised distribution constraints and panic buying, which are expected to stabilise.
OUTA: necessary, but too late
The Organisation Undoing Tax Abuse (OUTA) has welcomed the relief but criticised the timing and communication.
It said the intervention was “necessary and appropriate” in limiting what would have been significantly higher increases, but argued that the government acted too late despite clear signs earlier in March that fuel prices were set to spike.
OUTA CEO Wayne Duvenage said the government “cannot keep reacting at the last minute while households and businesses carry the uncertainty”, adding that earlier communication could have reduced panic and improved planning.
The organisation also stressed that the measure is temporary, and called for earlier decisions ahead of future price adjustments, and greater transparency on South Africa’s strategic oil reserves.
What South Africans are paying in April
Despite the levy relief, April still brings sharp increases at the pump, driven by higher crude oil prices, a weaker rand, and rising import costs.
From 1 April 2026, prices have increased by:
- Petrol (93 and 95): +R3.06 per litre
- Diesel (0.05%): +R7.37 per litre
- Diesel (0.005%): +R7.51 per litre
- Illuminating paraffin: +R11.67 per litre
Without the levy cut, increases would have been significantly higher.
The road to 6 May
For now, the government has bought time – cushioning April’s increase while the underlying pressures remain in place.
However, early indications suggest that significant price increases could follow in May, particularly if the temporary levy relief is not extended.
According to reporting by BusinessTech, the expiry of the R3 per litre levy cut on 6 May could see that amount added back into the fuel price. Combined with ongoing elevated oil prices and current under-recoveries, this raises the prospect of substantially higher increases in the next adjustment cycle.
In extreme scenarios, increases could again run into multiple rand per litre, particularly for diesel, depending on how global conditions evolve and whether the levy relief is reinstated.
With the next fuel price adjustment due on 6 May, attention now turns to whether the government will move earlier – and more decisively – before the next round of increases takes effect.
