South African motorists could learn this week whether the government will introduce further measures to ease soaring fuel costs, with President Cyril Ramaphosa confirming that the National Treasury is considering possible interventions.
Ramaphosa said the government was assessing its options as rising international oil prices and geopolitical tensions continued to place pressure on households and businesses. Potential measures could include changes to the general fuel levy, although no new relief package has been confirmed.
The issue is expected to feature prominently in Finance Minister Enoch Godongwana’s medium-term budget policy statement on Wednesday. Ramaphosa stressed that any decision would need to account for the impact on government revenue, public services and the country’s overall fiscal position.
Speaking during an African National Congress (ANC) media engagement in Johannesburg on Monday, the president said fuel price increases were affecting countries around the world and that South Africa was carefully considering its response.
Rising fuel costs put pressure on households
South Africa has been particularly exposed to international oil market disruptions because it is a net importer of oil. The conflict between the United States and Iran has contributed to constrained global supply, with the effects feeding into domestic fuel prices.
According to the supplied report, petrol prices have increased by nearly 50% and diesel prices by approximately 72% since the latest round of supply disruptions began affecting the local market.
Following the most recent monthly adjustment, petrol reached a record R30.95 per litre in Gauteng. Higher fuel costs can affect motorists directly while also increasing expenses for transport operators, businesses and supply chains, potentially adding to the broader cost of living.
The Congress of South African Trade Unions (COSATU), a key ally of the ANC, has called on the Treasury to restore the general fuel levy relief introduced earlier in the year. The union federation argues that further assistance could help soften the financial impact on households and businesses.
However, Ramaphosa warned that substantial subsidies or another reduction in the levy would come at a significant cost to the public purse.
He said the government had already committed approximately R24 billion to a subsidy mechanism when fuel prices surged several months ago. That intervention, he explained, meant resources had to be redirected from other government programmes.
The president added that South Africans would have to wait for Godongwana’s budget statement to understand what further action, if any, the government intended to take.
Treasury weighs relief against revenue and debt pressures
The latest debate follows a fuel levy reduction implemented in April. Before a sharp increase in petrol and diesel prices, the Treasury cut the general fuel levy by R3 per litre to cushion consumers against the initial price shock.
The measure followed pressure from COSATU, Business Leadership South Africa, the Democratic Alliance and the Fuel Industry Association. At the time, the Treasury estimated that the reduction would cost the government R17.2 billion in foregone revenue.
The levy helps finance public expenditure, including healthcare, education and policing. Renewing the relief would therefore require the government to balance immediate fuel cost pressures against the need to fund essential services.
The fiscal challenge has also been complicated by the withdrawal of a planned R20 billion tax increase. Nevertheless, revenue prospects could provide some room for manoeuvre.
Bank of America has forecast that revenue for the 2026/27 financial year could exceed the assumptions made in February by R70 billion, largely because of stronger corporate tax collections from gold and precious metals companies.
Even so, stronger revenue expectations do not remove the risks facing the public finances. Lower commodity prices could weaken corporate profits and reduce tax collections, while the government remains under pressure to bring elevated debt under control.
Patrick Buthelezi, an economist at Sanlam Investments, said the Treasury had generally maintained spending discipline. A three-year public sector wage agreement provides some near-term certainty over one of the government’s largest expenditure items.
Controls on public service staffing levels and a voluntary early retirement programme could also help contain wage costs.
The government must now decide whether further fuel relief is affordable without undermining these wider priorities. Although Ramaphosa confirmed that options were being considered, he did not announce a new subsidy or levy reduction.
The medium-term budget policy statement is therefore the next key milestone for motorists and businesses seeking clarity on possible assistance. Until the Treasury outlines its plans, any additional fuel price relief remains under consideration rather than guaranteed.