South Africa’s government has announced an extension of its temporary fuel tax relief measures, alongside additional support specifically aimed at reducing diesel costs.
The decision, confirmed by National Treasury and the Department of Mineral and Petroleum Resources, comes as global oil prices remain under pressure due to ongoing geopolitical tensions in the Middle East.
Initially introduced in March 2026, the relief provided a R3.00 per litre reduction to help shield consumers from rising fuel costs. Authorities have now decided to extend the measure by another month, with the new deadline set for 2 June 2026.
Additional Diesel Relief Introduced
In response to expectations of further diesel price increases, the government has increased the temporary diesel relief by 93 cents, bringing the total reduction to R3.93 per litre.
This effectively reduces the general fuel levy on diesel to zero during the extension period, while the petrol levy remains at R1.10 per litre.
The targeted support for diesel reflects its critical role in sectors such as transport, logistics, and agriculture, where rising fuel costs can have broader economic implications.
Fiscal Impact and Future Adjustments
The temporary relief is estimated to cost the government R17.2 billion in foregone revenue between April and June 2026. However, officials have emphasised that the measure is fiscally neutral and will be offset through stronger-than-expected tax collections and underspending elsewhere in the budget.
From 1 July 2026, fuel levies are expected to return to their previous levels, with petrol set at R4.10 per litre and diesel at R3.93 per litre.
Authorities also noted that adjustments to the Slate levy will be made in May, in line with the self-adjusting mechanism designed to balance under-recoveries experienced by fuel importers.
In parallel, the Department of Mineral and Petroleum Resources has launched a review of the fuel pricing formula, which could influence how fuel prices are regulated in the future.
The extension of relief measures highlights the government’s efforts to manage the impact of global energy volatility on domestic consumers, while maintaining fiscal discipline.
Source: National Treasury / Department of Mineral and Petroleum Resources
