CAPE TOWN, SOUTH AFRICA – FEBRUARY 25:Minister Enoch Godongwana at the media briefing ahead of the national budget speech at Imbizo Media Centre on February 25, 2026 in Cape Town, South Africa. The budget speech provides an overview of the economy of the previous and current years and gives budget estimates for the next financial year. (Photo by Gallo Images/Brenton Geach)
Finance Minister Enoch Godongwana has extended the temporary fuel levy relief to 2 June 2026. The extension comes amid expectations of a sharp increase in fuel prices from 6 May 2026, driven by escalating tensions in the Middle East.
Initially, the fuel levy relief was meant to last until 5 May 2026, but National Treasury and the Department of Mineral and Petroleum Resources said on Tuesday that it will be extended, including extending more relief to diesel users.
Increase in the fuel levy cut
Godongwana has also proposed increasing the fuel levy cut for diesel by 93 cents.
“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, reducing the levy to zero from Wednesday, 6 May 2026, to Tuesday, 2 June 2026,” said the two departments.
“The general fuel levy for petrol will remain at R1.10 per litre, and the general fuel levy for diesel will decrease from R0.93 per litre to R0.00 per litre.”
No more fuel levy relief in July
Godongwana has proposed reducing the fuel levy relief in June before removing it completely in July. “For the month of June 2026, the minister of finance proposes that the level of relief is halved to phase out the relief before July,” said the department.
“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 2026, to Tuesday, 30 June 2026.
“This will increase the general fuel levy for petrol from R1.10 per litre to R2.60 per litre and increase the general fuel levy for diesel from R0.00 per litre to R1.97 per litre.”
R4 for levy from July
From 1 July onwards, the general fuel levy for petrol will return to R4.10 per litre, and for diesel to R3.93 per litre.
The departments added that the estimated cost of the temporary fuel levy relief from April to June 2026 is R17.2 billion in foregone tax revenue.
“The fuel levy relief measure is designed to be revenue neutral and will be funded through a combination of higher-than-expected tax revenue and underspending and will not have an impact on the fiscal framework adopted by Parliament following the 2026 Budget,” read the statement.
A review for formula
“The Department of Mineral and Petroleum Resources has initiated a review of the formula whose conclusion will determine how fuel prices are regulated going forward.
“It should also be noted that according to the Self-Adjusting Slate mechanism, the under recovery of importers of petroleum products must also be accommodated, and as such, the Slate levy on petrol and diesel will also be adjusted for the month of May.”
