Government announces temporary fuel levy cut

The government has announced a set of short-term measures aimed at cushioning consumers from steep fuel price increases, as global energy markets come under pressure due to escalating conflict in the Middle East.

In a joint statement on Tuesday, Finance Minister Enoch Godongwana and Mineral and Petroleum Resources Minister Gwede Mantashe confirmed that consultations between the National Treasury and the Department of Mineral and Petroleum Resources had resulted in a two-phase intervention plan.

The first phase includes a temporary reduction in the general fuel levy by R3 per litre, effective from 1 April to 5 May 2026. This will lower the levy on petrol from R4.10 to R1.10 per litre and on diesel from R3.93 to R0.93 per litre, excluding other charges such as the Road Accident Fund and carbon fuel levies.

The measure is expected to cost the fiscus approximately R6 billion in lost revenue over the one-month period, but the government has indicated it will implement mechanisms to recover the funds within the existing budget framework. The relief will also be reviewed monthly over the following two months.

Officials said the decision aims to balance the financial strain on households, particularly rising food and transport costs, while maintaining fiscal discipline outlined in the 2026 Budget.

The government has also reassured the public that there is sufficient fuel supply nationwide, noting that reported shortages are largely due to panic buying and localised distribution challenges rather than a lack of stock. Consumers and businesses have been urged to avoid hoarding fuel.

The second phase of the plan will focus on longer-term interventions, including a review of the fuel pricing structure and additional support measures for households and key economic sectors, which will be announced in due course.