South Africa’s temporary fuel levy relief has been extended for another month, as government moves to shield consumers from persistently high fuel prices.
In a joint statement on Tuesday, National Treasury and the Department of Mineral and Petroleum Resources confirmed that the R3 per litre reduction in the general fuel levy will remain in place until 2 June 2026.
The relief, introduced on 1 April, was aimed at easing pressure on households after global oil prices surged due to the ongoing Middle East conflict. Since then, continued volatility has kept domestic fuel prices elevated.
For May, the relief on petrol will stay at R3 per litre, maintaining the general fuel levy at R1.10 per litre.
Diesel users will benefit from additional support, with the levy effectively reduced to zero after a further 93 cents per litre cut, bringing total relief to R3.93 per litre from 6 May to 2 June.
A phased withdrawal is planned for June. From 3 June to 30 June, relief will be reduced to R1.50 per litre for petrol and R1.96 per litre for diesel.
The levy is set to return to its full rates of R4.10 per litre for petrol and R3.93 per litre for diesel from 1 July 2026.
Government estimates the cost of the relief between April and June at R17.2 billion in foregone revenue, but maintains the measure is revenue-neutral, funded through higher-than-expected tax collections and underspending elsewhere.
While supporting the extension, the DA said it would oppose any move to fund the relief through higher taxes or increased debt. Instead, he called on government to tap into surplus funds held by underperforming state entities.
According to the DA, institutions such as the Compensation Fund routinely retain billions in annual surpluses despite poor audit outcomes, with approval from Treasury. The party argues that reclaiming these funds would provide a fiscally responsible way to sustain relief.
