By Thebe Mabanga
Finance Minister Enoch Godongwana has extended the R3 per litre fuel levy relief to the end of June as conflict in the Middle East continues to put pressure on local fuel prices.
The minister has gone further, cutting the fuel levy on diesel to zero as diesel prices face steeper increases.
“At the end of March, I announced a temporary reduction of the general fuel levy of R3 per litre to help households with rising fuel prices caused by conflict in the Middle East,” Godongwana said when unveiling the latest measures.
“The continuation of the conflict has sustained pressure on global oil prices and led to increases in domestic fuel prices.”
To counter the expected hikes, Godongwana will retain the R3 per litre reduction in the general fuel levy for petrol until Tuesday, 2 June 2026.
“Given the large expected increases in the price of diesel, the Minister of Finance proposes that the temporary relief for diesel is increased by 93 cents to R3.93 per litre, effectively reducing the levy to zero,” National Treasury said in an accompanying statement.
This means that from next Wednesday to Tuesday, 2 June, the general fuel levy for petrol will remain at R1.10 per litre, while the levy for diesel will drop from R0.93 per litre to R0.00.
Treasury said that for June 2026, the relief will be halved to phase it out ahead of July.
“As a result, the amount of relief from the general fuel levy will be reduced to R1.50 per litre for petrol and R1.96 per litre for diesel, effective from Wednesday, 3 June to Tuesday, 30 June 2026.”
This will increase the general fuel levy for petrol from R1.10 per litre to R2.60, and for diesel from R0.00 to R1.97 per litre.
From July, the levy will return to its normal levels of R4.10 per litre for petrol and R3.93 per litre for diesel.
The minister said there is currently no relief planned beyond June.
The measures will cost the fiscus R17.2 billion in foregone taxes to the end of June.
Godongwana said this would be offset by higher-than-expected tax revenue and lower spending, and would not alter the fiscal stance adopted in the Budget tabled in February.
The price of Brent crude oil has remained above $100 a barrel since the escalation of the conflict involving Iran, the United States and Israel at the end of February.
INSIDE POLITICS
