South Africa has introduced a temporary fuel levy cut to ease consumer pressure. At the same time, it aims to maintain stable fuel supply.
On Tuesday, 31 March, Finance Minister Enoch Godongwana and Mineral Resources Minister Gwede Mantashe confirmed the decision. The levy will drop by R3 per litre.
The reduction starts on Wednesday, 1 April, and ends on Tuesday, 5 May 2026.
Impact on Fuel Prices and Government Revenue
Under this measure, the petrol levy decreases from R4.10 to R1.10 per litre. Similarly, the diesel levy drops from R3.93 to R0.93.
However, these figures exclude other charges like the Road Accident Fund Levy. They also exclude the Carbon Fuel Levy.
As a result, the government will lose about R6 billion in tax revenue. Authorities will review the measure monthly over the next two months.
Nevertheless, officials stated the plan remains fiscally neutral. Systems are already in place to recover the lost revenue.
Godongwana explained that the goal is to reduce pressure on consumers. In particular, the focus is on food and transport inflation.
Fuel Supply Stability and Public Guidance
Meanwhile, the government assured citizens that fuel supply remains sufficient. It can meet both current and future demand.
The statement clarified the situation as follows:
“Reports of shortages in certain areas are largely due to localised distribution and logistical challenges driven by panic buying rather than a lack of national fuel stocks, and these are expected to self-correct in the coming days.
“Motorists and businesses are encouraged to purchase fuel responsibly and avoid unnecessary stockpiling.”
Furthermore, the Minister of Mineral and Petroleum Resources will continue monitoring fuel prices. This review will guide decisions over the medium term.
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