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Home » Fuel Levy Relief Extension: Enoch Godongwana to Announce Decision
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Fuel Levy Relief Extension: Enoch Godongwana to Announce Decision

newsnote correspondentBy newsnote correspondent13 hours agoNo Comments6 Views
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Finance Minister Enoch Godongwana. Source: X
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South Africa’s Finance Minister, Enoch Godongwana, is expected to announce on Tuesday, 28 April, whether the government will extend its temporary fuel relief measures introduced earlier this year.

The relief, which saw the fuel levy reduced by R3 per litre, came into effect on 1 May as part of efforts to cushion motorists from rising fuel prices. Speaking in the National Assembly last week, Godongwana said he is still carefully considering the impact of persistently high fuel costs.

The pressure on global energy markets—linked to tensions involving the United States, Israel and Iran—has prompted calls for the relief to remain in place for as long as instability continues. In response, Godongwana confirmed that the proposal is under review.

“I am applying my mind to the extension of the fuel levy and will make an announcement at the appropriate time,” he said. “I committed to reviewing the matter at the end of the month after consultations, and I expect to provide clarity on Tuesday.”

Supporters of an extension have pointed to strong tax collection figures reported by the South African Revenue Service (SARS), which brought in R2 trillion for the 2025/26 financial year. However, Godongwana warned that this figure must be weighed against significantly higher government spending.

While SARS revenue has reached record levels, total expenditure stands at R2.4 trillion, leaving a shortfall of around R400 billion. In addition, debt servicing costs are of a similar magnitude, meaning the government is expected to borrow approximately R800 billion this year.

According to National Treasury, the R3 per litre fuel levy reduction currently in place is costing the fiscus about R6 billion in lost revenue for April alone, underscoring the financial trade-offs involved in extending the relief.

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