Government has extended temporary fuel levy relief until the end of June, citing ongoing pressure on global oil prices due to the Middle East conflict affecting supply routes through the Strait of Hormuz.
The National Treasury and Department of Mineral and Petroleum Resources announced on Tuesday that the R3 per litre reduction in the general fuel levy for petrol, originally set to expire on 5 May, will now continue until 2 June.
Diesel will receive enhanced relief, with the levy reduced to zero from 6 May to 2 June – an increase of 93 cents to R3.93 per litre.
Brent crude oil was trading high at more than $114 a barrel today (29 April). In February this year it was just over $70 a barrel and in April 2025 it cost just over $68 a barrel.
“To provide further relief and to address concerns of higher inflation and negative impacts on economic growth due to increasing fuel prices, the Minister of Finance proposes that the R3 per litre reduction in the general fuel levy for petrol is extended until Tuesday, 2 June,” the government said in a statement.
The relief will be halved in June before being phased out entirely by 1 July. From 3 June to 30 June, petrol relief will drop to R1.50 per litre and diesel relief to R1.96 per litre. The full levy of R4.10 per litre for petrol and R3.93 per litre for diesel will be restored from 1 July.
The temporary relief, first announced on 31 March, was installed to cushion households from rising fuel prices following the escalation of the Middle East conflict. The continuation of hostilities has resulted in consistent pressure on global oil prices, with South Africa’s diesel supply particularly vulnerable due to procurement routes through the Strait of Hormuz.
The estimated cost of the temporary fuel levy relief from April to June is R17.2 billion in foregone tax revenue. Government said the measure will be revenue neutral and will be funded through a combination of higher-than-expected tax revenue and underspending.
Political opposition
The Democratic Alliance has called for more extensive relief, proposing a 50% reduction in both the general fuel levy and Road Accident Fund levy for the duration of the oil price shock. The party’s finance spokesperson Dr Mark Burke said the relief should be funded using surpluses from state entities, citing the Compensation Fund’s R21.7 billion surplus and sector education and training authorities’ R6.7 billion surplus.
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On 27 April, the DA urged the finance minister to extend the fuel levy relief for at least another month beyond the initial 5 May deadline. Whilst the party welcomed the extension, it has stopped short of calling for permanent suspension of the levy.
The Economic Freedom Fighters has taken a more radical stance, demanding permanent removal of the fuel levy. The party described the temporary relief as “a plaster on the wound” and said it is pursuing a court case against “fuel levy in its totality”.
“There should be a permanent removal of the fuel levy,” the EFF said, linking the challenge to previous successful litigation on VAT matters.
The Department of Mineral and Petroleum Resources has initiated a review of the fuel price formula, with the process expected to be completed in March next year. The review will determine how fuel prices are regulated going forward.
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