Finance Minister Enoch Godongwana has announced an extension of the R3 per litre reduction in the fuel levy on petrol, with the relief measure now set to remain in place until June.
In a further intervention aimed at easing pressure on key sectors, the minister also confirmed a R3.93 per litre reduction for diesel, effectively bringing the diesel levy down to zero. The move is expected to provide significant support to the transport, logistics and industrial sectors, which are particularly sensitive to fuel cost fluctuations.
The announcement comes against the backdrop of anticipated sharp increases in fuel prices. According to the latest data from the Central Energy Fund (CEF), motorists could face substantial hikes from the first Wednesday of May. Diesel prices are projected to rise by approximately R5.42 per litre, while the price of 95 octane petrol is expected to increase by more than R2 per litre.
In an official statement, Godongwana said the extension of the levy relief forms part of a broader effort to mitigate the impact of rising global oil prices on consumers and the wider economy. International oil markets have experienced renewed volatility in recent weeks, driven in part by escalating geopolitical tensions in the Middle East.
By temporarily reducing the fuel levy, the National Treasury aims to absorb a portion of the cost increases, thereby limiting the knock-on effects on inflation and the overall cost of living. Fuel prices are a key driver of inflation, influencing transport costs, food prices and broader economic activity.
The measures are intended as short-term relief while global market conditions remain uncertain. However, with fuel price pressures expected to persist, questions remain about the sustainability of such interventions and the potential fiscal impact on government revenue.
For now, the extension offers some respite to motorists and businesses, although significant price increases are still expected to take effect in the coming weeks.