South Africa’s National Treasury has introduced a temporary fuel tax cut as part of a broader plan to cushion motorists and businesses from sharp fuel price increases.
The measure takes effect from 1 April to 5 May 2026 and lowers the general fuel levy on both petrol and diesel for one month. Other charges that form part of the pump price, such as the Road Accident Fund and carbon levies, remain in place.
According to the Treasury, this step is only the first phase of a wider relief strategy. While the tax reduction will provide short-term breathing room for consumers, the government has made it clear that the move is designed to be fiscally neutral, meaning the revenue lost during this period will be recovered later within the national budget framework.
Finance Minister Enoch Godongwana said the decision is aimed at reducing the knock-on effects of higher fuel costs on transport fares and food prices, while still protecting the country’s finances.
A second phase of support is already being developed. This will involve a broader review of South Africa’s fuel pricing structure over the medium term, alongside additional measures to support households and key sectors of the economy.
The intervention followed consultations between the Treasury and the Department of Mineral and Petroleum Resources, which agreed that immediate action was necessary given the scale of the upcoming price adjustments.
No national fuel shortage
Amid reports of some filling stations running out of fuel, the Treasury reassured the public that the country has adequate fuel stocks. Officials said the isolated shortages were caused mainly by distribution challenges and panic buying rather than a nationwide supply problem.
Motorists and businesses were advised to buy fuel responsibly and avoid unnecessary stockpiling as the situation is expected to stabilise.
Prices still set to rise
Despite the temporary tax relief, fuel prices are still expected to increase from 1 April due to global oil market pressures and currency factors. Petrol and diesel prices will both see significant hikes, with diesel reaching record levels.
Authorities noted that without the temporary tax cut, the price increases would have been even higher.
Further details about the next phase of the government’s fuel pricing support plan are expected to be announced in the coming months.
