Government has reduced the fuel levy by R3 per litre to soften what would have been a much steeper fuel price increase on Wednesday, but opposition parties and a civil society watchdog have criticised the timing and questioned how the relief will be funded.

The temporary measure, which runs until 5 May, cuts the general fuel levy from R4,10 per litre to R1,10 per litre for petrol, and from R3,93 per litre to R0,93 per litre for diesel.

Despite the relief, petrol prices still increased by R3,06 per litre across all grades on Wednesday, while diesel rose by between R7,37 and R7,51 per litre. Without the levy reduction, the increases would have been significantly higher, with diesel potentially climbing by up to R10 per litre.

The Department of Mineral and Petroleum Resources attributed the increases to a sharp rise in Brent crude prices, which jumped from about $69,08 to $93,67 per barrel, driven by escalating conflict in the Middle East.

The Democratic Alliance claimed credit for the intervention, saying it had called for the relief last week.

Dr Mark Burke, DA spokesperson on finance, said his party had proposed a R3,17 reduction with a funded plan, and the minister’s R3 announcement came within striking distance.

“We understand that for many South Africans, the over R7 increase in diesel and R2 increase in petrol prices will seriously damage budgets and affect business decisions,” Burke said.

He said the DA looked forward to details on how the relief would be funded, warning that it could not be financed through additional debt or other forms of taxation.

“The only viable route to funding this relief is to make spending more efficient,” Burke said. “The National Treasury must refuse to grant permission to broken state entities such as the Compensation Fund and SETAs to keep their huge annual surpluses.”

The Freedom Front Plus welcomed the relief but warned that the lost tax revenue would need to be recovered later from motorists.

Dr Wynand Boshoff, VF Plus chief spokesperson on mineral and petroleum resources, said the party hoped international oil price fluctuations would return to normal within the month, allowing the state to recover lost income without raising fuel prices again.

This relief is welcome, but it should have been communicated earlier to allow people to plan and absorb the impact.

“The current crisis underscores South Africa’s dependence on imported fuels,” Boshoff said. “The strategic importance of Sasol, as well as sustainable electricity supply to enable electric transport, becomes very clear in such times.”

outa,Wayne Duvenage, chief executive of the Organisation Undoing Tax Abuse, said the relief was necessary but poorly timed.

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“Government cannot keep reacting at the last minute while households and businesses carry the uncertainty,” Duvenage said. “This relief is welcome, but it should have been communicated earlier to allow people to plan and absorb the impact.”

OUTA said clear warning signs of significant price increases were apparent by mid-March, giving government sufficient time to act sooner. The organisation said earlier intervention would have reduced panic and improved planning across transport and food sectors.

The fuel levy reduction will be re-evaluated monthly for the next two months. Government also announced a broader review of fuel pricing over the medium term and measures to recoup foregone revenue within the 2026 budget framework.

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OUTA called for greater transparency on South Africa’s strategic oil reserves, including current levels, usage policy and the framework guiding their deployment during periods of price pressure.

“There is no justification for keeping the public in the dark on strategic oil reserves,” Duvenage said. “South Africans deserve to know what safeguards are in place and when they will be used to protect the economy.”

The next fuel price adjustment is scheduled for 6 May. OUTA said government should communicate any decisions at least one week in advance to avoid unnecessary volatility.

The government has assured the public of sufficient national fuel supply and urged consumers to avoid panic-buying.

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