Finance Minister Enoch Godongwana has stated that the temporary fuel levy relief introduced from April to June 2026 will cost an estimated R17.2 billion in foregone tax revenue.
The government has extended the R3 per litre reduction for petrol and R3.93 per litre relief for diesel, with the measures set to remain in place until the end of June.
The intervention comes as motorists brace for steep fuel price hikes. According to the Central Energy Fund, diesel is expected to increase by R5.42 per litre, while 95 octane petrol could rise by more than R2 per litre in early May.
Godongwana said the relief is aimed at cushioning consumers and limiting inflationary pressures driven by rising global oil prices.
“The formula will provide relief measures designed to be revenue neutral and will be funded through a combination of higher-than-expected tax revenue and underspending, and will not have an impact on the fiscal framework adopted by Parliament,” he said.
He added that the measures are part of a broader strategy to manage the economic impact of global energy volatility.
Oil markets have recently experienced sharp increases amid renewed geopolitical tensions linked to the ongoing conflict in the Middle East, further contributing to uncertainty around fuel prices.
VOC News
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