Minister of Finance Enoch Godongwana and Minister of Mineral and Petroleum Resources Gwede Mantashe have announced a temporary cut in the fuel levy ahead of the anticipated surge in fuel prices on Wednesday.
The move will reduce the expected fuel increase by R3, which the Central Energy Fund anticipates to be about R6 for petrol and R10 for diesel.
The prediction is historically the highest fuel price upward adjustment in South Africa since 2022, when Russia invaded Ukraine.
The two departments sought measures to offer relief for consumers and also provide a steady fuel supply.
“This adjustment will reduce the general fuel levy for petrol from R4.10 per litre to R1.10 per litre and reduce the general fuel levy for diesel from R3.93 per litre to R0.93 per litre for one month,” reads the joint statement.
Foregone tax revenue
“These amounts exclude other levies such as the Road Accident Fund levy and the carbon fuel levy.
“It is estimated that the partial reduction in the fuel levy will cost around R6-billion in foregone tax revenue for the one-month period. The relief measure will be re-evaluated on a monthly basis for the following two months.”
The measure is intended to have no net impact on public finances, with the government planning to recover the lost revenue within the framework set out in the 2026 budget.
In making this decision, Godongwana aimed to strike a balance between the broader socioeconomic effects on the country and the impact on the welfare of consumers.
Sufficient fuel supply
The joint statement reads further: “The government further wishes to assure the public that there is sufficient fuel supply in the country to meet current and projected demand.
“Reports of shortages in certain areas are largely due to localised distribution and logistical challenges driven by panic buying rather than a lack of national fuel stocks, and these are expected to self-correct in the next coming days.
“Motorists and businesses are encouraged to purchase fuel responsibly and avoid unnecessary stockpiling.”
- Finance Minister Enoch Godongwana announced a temporary reduction in the fuel levy.
- Minister of Mineral and Petroleum Resources Gwede Mantashe supported the decision.
- The fuel levy cut aims to mitigate the upcoming surge in fuel prices.
- The price increase is expected to occur on Wednesday.
- The measure is temporary to ease immediate financial pressure on consumers.
Minister of Finance Enoch
“This adjustment will reduce the general fuel levy for petrol from R4.10 per litre to R1.10 per litre and reduce the general fuel levy for diesel from R3.93 per litre to R0.93 per litre for one month," reads the joint statement.
"The Fund
“It is estimated that the partial reduction in the fuel levy will cost around R6-billion in foregone tax revenue for the one-month period. The
In making this decision, Godongwana
“Reports of shortages in certain areas are largely due to localised distribution and logistical challenges driven by panic buying rather than a lack of national fuel stocks, and these are expected to self-correct in the next coming days.
"Motorists and businesses are encouraged to purchase fuel responsibly and avoid unnecessary stockpiling.”
