South Africa slashes fuel levy to ease price rise on citizens

Africa, Business, Politics

AFRICA, 01 April 2026 (NPA) — In a decisive move to shield South Africans from surging global energy costs, the National Treasury and the Department of Petroleum and Mineral Resources (DMPR) have announced a temporary R3 cut to the general fuel levy.

Effective immediately, the levy on petrol drops from R4.10 to R1.10 per litre, while diesel falls from R3.93 to R0.93. Officials say the measure will provide motorists with urgent relief while safeguarding the stability of the country’s fuel supply system.

The Finance Minister emphasised that the decision balances consumer welfare, particularly food and transport inflation, with fiscal objectives. The one‑month reduction is expected to cost R6 billion in foregone revenue and will be reviewed monthly for the next two months.

Without the cut, April’s fuel price hikes would have been steeper: petrol up R3.06 per litre, diesel rising more than R7, and paraffin climbing by over R11 wholesale. The DMPR stressed that paraffin pricing excludes levies and taxes, a deliberate policy to protect low‑income households.

Authorities assured the public that national fuel stocks remain sufficient, with reported shortages linked to localised panic buying and logistical bottlenecks. Citizens are urged to avoid unnecessary stockpiling and purchase responsibly to prevent further strain on distribution networks.

The government reiterated its commitment to protecting vulnerable households, promising further targeted measures to cushion the poor from high energy costs. Officials added that work is underway on a broader package of interventions to support households and key sectors of the economy, with details to be announced soon.