South African motorists and transport operators are getting short-term relief at the pumps after government extended the temporary fuel levy cuts, with diesel users seeing the biggest benefit.
In a joint statement, the National Treasury and the Department of Mineral and Petroleum Resources confirmed that the R3.00 per litre reduction on petrol will remain in place until 2 June 2026. Diesel, which has been under heavier pressure due to global supply risks, will now receive a total relief of R3.93 per litre after an additional 93 cents cut.
For diesel, this effectively brings the general fuel levy down to zero for the period from 6 May to 2 June, offering critical breathing room for the logistics, farming and manufacturing sectors that rely heavily on the fuel.
The decision comes as global oil markets remain volatile, with tensions in the Middle East continuing to disrupt supply routes. Government says the intervention is aimed at limiting the knock-on effect of rising fuel prices on inflation and the broader economy.
From June, however, the relief will start to ease off. Petrol relief will be reduced to R1.50 per litre, while diesel relief drops to R1.96 per litre between 3 June and 30 June. This means the fuel levy will increase again to R2.60 per litre for petrol and R1.97 per litre for diesel during that period.
By 1 July 2026, the temporary measures will fall away completely, with the fuel levy returning to R4.10 per litre for petrol and R3.93 per litre for diesel.
Government estimates the cost of the relief at R17.2 billion in foregone revenue between April and June. According to Treasury, this will be funded through higher-than-expected tax collections and underspending in other areas, without disrupting the country’s fiscal framework.
Economist Sifiso Skenjana says diesel remains a key pressure point in the economy, particularly for heavy industry and transport. A significant portion of South Africa’s diesel supply passes through the Strait of Hormuz, making it vulnerable to global disruptions.
He also warned of growing risks in the local market, including reports of fuel adulteration at some service stations, as operators try to cope with rising costs.
While the extension brings some relief for now, the outlook remains uncertain, especially for sectors like trucking where diesel costs directly impact operating margins and, ultimately, the price of goods on the shelf.
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