Govt To Raise Ethanol Blending From E5 To E20 To Cut Fuel Prices: Mthuli Ncube

Govt Will Increase Ethanol Blending From E5 to E20 To Slash Fuel Prices, Says Mthuli Ncube

The government will increase ethanol blending from E5 to E20 in a move aimed at containing fuel prices, Finance Minister Mthuli Ncube has revealed, as authorities also review fuel taxes and levies to cushion motorists against rising global oil costs.

The announcement was made on Tuesday, 24 March 2026, following Cabinet deliberations, with authorities also confirming that tax adjustments and fuel levy reductions are already being implemented to keep prices under control.

According to the Ministry of Information, Publicity and Broadcasting Services, the government is actively working on multiple interventions to stabilise fuel costs and ensure supply remains adequate.

Govt Moves To Contain Rising Fuel Prices

Authorities confirmed that the government has already begun revising fuel taxes and levies as part of a broader price containment strategy.

Finance Minister Mthuli Ncube explained that recent diesel price increases were cushioned through tax adjustments.

“Already we’ve been revising taxes and levies. Last week, when the price of diesel moved up to US$2.05 (approximately R37.90), it could have gone up to US$2.20 (approximately R40.68), but the difference was due to the fact that we applied the levy reduction strategy on the diesel price and managed to cap it at US$2.05,” he said.

He added that further refinements are underway.

“This strategy is already in play, and going forward, we are also looking at further fine-tuning of those levies for both petrol and diesel, and also looking at other taxes, the import duties as well as the carbon tax that is being charged.”

Authorities also confirmed that the Cabinet approved the review of selected and time-bound fuel taxes.

The Ministry of Information said the move was designed to contain inflationary pressures.

“Cabinet approved the review of selected and time-bound fuel taxes to contain inflationary pressures and safeguard consumer welfare.”

The government also indicated that adjustments will be communicated soon but did not give any definitive timelines.

“Appropriate refinements of the options are underway, and the necessary fuel price adjustments will be communicated in due course.”

Ethanol Blending From E5 To E20

The government is also planning to increase ethanol blending from 5 per cent to 20 per cent, a move officials say could significantly reduce fuel prices.

Ncube explained that the blending initiative is already under consideration.

“We’re talking to those who are supplying us with ethanol to increase the blending from 5% to 20% from E5 to E20, and we believe that that alone, in terms of analysis, could reduce the price by as much as US$0.18 (approximately R3.33) or US$0.19 (approximately R3.51) or thereabout.”

Authorities say the measure forms part of a broader fuel price containment strategy.

The development was also confirmed by Government officials on Tuesday, 24 March 2026.

“Government is containing fuel prices through tax adjustments and levies, with further fine-tuning underway. Increasing ethanol blending from E5 to E20 could lower costs,” officials said.

Govt Focuses On Fuel Supply Stability

The government also stressed that fuel availability remains a key concern.

Ncube said authorities are working closely with suppliers to guarantee supply.

“What’s critically important as well with the fuel issue is not just price, just the availability of fuel in the first place.”

He added:

“Making sure that the supply is assured, that’s something that is occupying government, and again, we’re staying very close to the suppliers of fuel and making sure that at least for the next three months or so, we have adequate supply but also dealing with the price at the same time.”

The developments come amid rising global oil prices, which have placed pressure on fuel costs across many countries.

The government also added that further announcements will be made once consultations are complete.