South Africa’s fuel levy relief, currently being used to offset astronomical petrol and diesel prices, is set to expire soon. The measure, announced in March this year, was always going to be temporary. Recent statements by SA’s finance minister Enoch Godongwana have made it clear that the Treasury is looking at ending the relief program.
Godongwana told members of Parliament that the fuel levy relief program has already cost the country more than R17 billion in lost tax revenue. According to the minister, “This is further disrupting an already fragile global economic environment, shaped by trade wars and supply chain vulnerabilities.”
Fuel levy – Oh, SA
That said, a definite end date for the program hasn’t been announced. The fuel levy suspension is expected to be terminated from July this year, with June seeing the relief halved. It should phase out entirely soon afterwards.
After this, South African drivers will feel the full weight of the fuel price increases, potentially driving petrol prices beyond the R30/l mark.
The South African government may opt to extend the measure, but there are no signs of it taking place at present. It may also be that there’s another offset plan. The current implementation was extremely last-minute. Whether Treasury takes similar steps, either with a new initiative or a fuel levy extension, will depend on the country’s economic situation at the time. Right now, “government is closely reviewing the fiscal and economic baseline assumptions underpinning the current framework.”




