More petrol and diesel price relief for South Africa is coming – BusinessTech

The National Treasury says that the temporary R3 cut to fuel levies in South Africa is just the first phase of its planned support for fuel pricing, with the second phase still on the way.

Treasury announced on Tuesday (31 March) that it would cut the general fuel levy by R3 per litre from 1 April to 5 May 2026.

According to the Treasury, this is only a temporary measure that forms phase 1 of its relief strategy.

This phase will see the general fuel levy for petrol decrease from R4.10 per litre to R1.10 per litre, and the general fuel levy for diesel decrease from R3.93 per litre to R0.93 per litre, for one month.

These amounts exclude other levies such as the Road Accident Fund levy and the Carbon Fuel Levy.

The finance department noted that this partial reduction will cost an estimated R6 billion in foregone tax revenue for the month.

However, this relief comes with a big catch—it is designed to be fiscally neutral, which means South Africans will be paying more later to recover the losses.

“The relief measure is 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,” the department said.

Minister of Finance Enoch Godongwana said the relief aims to balance the financial impact on the country and the welfare impact on South African consumers.

This is especially regarding food and transport inflation.

The second phase of the support will be a broader review of fuel pricing over the medium term, the ministry said.

“Work is underway on a broader package of measures to support households and key sectors of the economy. Further details on additional support measures will be announced in due course,” it said.

The support follows consultations between the National Treasury and the Department of Mineral and Petroleum Resources (DMPR) to explore measures to provide short-term relief to consumers.

The departments agreed that immediate intervention was required, with broader support for households and key sectors of the economy.

No fuel shortages

In addition to the temporary tax relief, the National Treasury moved to assure South Africans and the public at large that there is sufficient fuel supply in the country.

Reports for the past week have flagged multiple cases of fuel stations running out of supply or being forced to ration available supplies to avert running dry.

The Treasury noted that these reports of shortages in certain areas are largely due to localised distribution and logistical challenges driven by panic buying rather than a lack of national fuel stocks.

These are expected to self-correct in the coming days, it said.

“Motorists and businesses are encouraged to purchase fuel responsibly and avoid unnecessary stockpiling,” Treasury said.

According to the DMPR, from 1 April, petrol prices will increase by R3.06 per litre. Diesel prices will see a staggering R7.37 and R7.51-per-litre leap.

This will take petrol prices to R23.36 per litre (inland, Petrol 95), and diesel prices to R26.11 per litre (wholesale, inland, 0.005% sulphur).

Notably, this puts diesel prices at an all-time high. The previous record was R25.53 per litre in July 2022, soon after Russia’s invasion of Ukraine.

The record high for petrol was recorded in the same month at R26.74. Even without the R3.00 per litre levy relief, the final price would have missed this record.

The table below outlines the changes from 1 April: