Government cuts fuel levy by R3 per litre ahead of fuel hike

Government has cut the fuel levy by  R3 per litre as a temporary relief measure ahead of Wednesday’s fuel price hike.

Finance Minister, Enoch Godongwana, says this will reduce the general fuel levy for petrol from R4.10 per litre to R1.10, and for diesel from R3.93 per litre to R0.93, from tomorrow until 5 May.

The ongoing conflict in the Middle East involving the US, Israel and Iran has pushed global oil prices higher.

Godongwana says the partial reduction in the fuel levy will cost around R6 billion in foregone tax revenue for the month.

“The relief measure will be re-evaluated every month for the following two months. 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.”

Government says the decision seeks to balance the socio-economic impact on the country and welfare impact on South African consumers, particularly on food and transport inflation, with the fiscal objectives outlined in the February Budget.

JOINT MEDIA STATEMENT:
ANNOUNCEMENT BY MINISTER ENOCH GODONGWANA AND MINISTER GWEDE MANTASHE ON SHORT-TERM RELIEF MEASURES TO ADDRESS FUEL PRICE INCREASES pic.twitter.com/wzyx6flUSU

— Department of Mineral and Petroleum Resources ‏ (@DMPR_ZA) March 31, 2026

Labour federation Cosatu says the partial cut in the fuel levy is a positive step, but warns that more relief is urgently needed in the wake of the war in the Middle East.

Cosatu’s, Matthew Parks, says while they welcome government’s efforts, workers are already under severe financial pressure.

“The most important source of relief for workers, society and the economy, is to reduce the fuel taxes and levy further.  This is the most impactful and cost-effective solution to this global crisis.  Additional relief should be sought by making public transport more affordable to commuters.

“If the war drags on and inflation rises, additional relief should be put in place, in particular adjusting social and the SRD grants, delivering food parcels to social grant recipients, putting in place measures to protect food from inflation with targeted support for agriculture and Transnet, and engaging Eskom on measures to reduce the price of electricity.”

The National Youth Unemployment Movement (NYUM) has warned that looming fuel price hikes will severely impact unemployed youth across the country.

The movement’s national leader, Lindokuhle Yende, has called for urgent interventions, including relief for low-income households.

Meanwhile, the South African National Taxi Council (Santaco) has urged commuters to brace themselves for possible taxi fare increases.

The council has, however, reassured commuters that all fare adjustments will be implemented with careful consideration.

SANTACO’s National spokesperson, Mmatshikhidi Rebecca Phala, says all increases will be communicated transparently through official notice boards at taxi ranks and verified association  platforms.

“SANTACO confirms that it is gravely concerned about the panic that has begun to affect daily taxi operations. Reports of fuel shortages, limitations on refueling volumes, and escalating diesel prices are already placing strain on taxi associations and operators across the country.

“The increases in diesel in particular are even more concerning because it appears fuel stations are overpricing it thereby taking advantage of its lessened regulation in comparison to petrol.”