With talk of yet another major petrol and diesel price hike hitting South African motorists come May, the National Treasury has confirmed that it will step in to offer a small break on the fuel tax. This mirrors the previous reduction offered to motorists in April, softening the blow of massive hikes due to rising oil costs.
The relief will see R3/l knocked off petrol prices — the same as in April. Owing to the larger hikes facing diesel drivers, they will see a bigger cut of R3.93/l. Seems fair, considering. These changes will be officially introduced on 6 May, when the Department of Mineral Resources and Energy (DMRE) adjusts prices nationally.
Sigh of relief
The fuel tax reduction isn’t a one-and-done deal either. The National Treasury and the DMRE understand that fuel prices won’t come down overnight, and suggest that the relief will continue into July. Just… at a lower rate. The National Treasury seeks to halve the relief offered to motorists in April. Hey, a win is a win.
“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,” it said.
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,” it continued.
Read More: May fuel shock looms: price hikes ease slightly, but diesel still set to spike nearly R6/l
Reality will hit harder than ever in July, however, when the general fuel levy for petrol returns to R4.10/l. It’s a slightly different story for diesel prices, which will return to form at R3.93/l. Here’s hoping fuel prices will have calmed down by the time July rolls ’round.
The National Treasury’s statement wasted no time revealing the expected budget for the coming relief. R17.2 billion is the final figure, covering the tax relief from April up until July. That sounds about right, with April’s relief estimated to cost roughly R6 billion. It’s paying the bills via a combination of “higher-than-expected tax revenue and underspending…”
“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.”
