Godongwana confirms fuel levy cut to ease petrol price increase
· Citizen
Finance Minister Enoch Godongwana has confirmed a R3 fuel levy cut for April to ease the hefty increase set to hit motorists at midnight.
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This, as petrol increases by R3.06 and diesel by between R7.37 and R7.51.
Godongwana previously announced a fuel levy increase during his Budget Speech in late February.
On Tuesday, he noted that the fuel levy cut is only for April, while the government decides what to do for the next two months.
“I will temporarily be lowering the fuel levy for this month of April by R3, and then I am still discussing what we can do for the next two months,” Godongwana said.
Fuel levy decrease for April
Godongwana had made an increase to the fuel levy days before the outbreak of the Middle East conflict, which has led to oil prices surging.
The escalated tension has caused the South African government to implement measures to cushion the financial blow to South Africans.
“The first phase is the temporary reduction in the general fuel levy and addressing fuel security concerns,” read a joint media statement between Treasury and the Department of Mineral Resources and Energy.
“The minister of finance proposes that the general fuel levy is temporarily reduced by R3 per litre from Wednesday 1 April 2026 to Tuesday 5 May 2026.
“This will reduce the general fuel levy for petrol from R4.10 per litre to R1.10 per litre and reduce the general fuel levy for diesel from R3.93 per litre to R0.93 per litre for one month. These amounts exclude other levies such as the Road Accident Fund levy and the carbon fuel levy.”
R6 billion to be lost in tax
The temporary relief will see R6 billion lost in tax revenue.
“It is estimated that the partial reduction in the fuel levy will cost around R6 billion in foregone tax revenue for the one-month period,” read the statement.
“The relief measure will be re-evaluated on a monthly basis for the following two months.
“The relief measure is designed to be fiscally neutral, and the government will implement mechanisms to recoup the foregone revenue within the fiscal framework approved during the 2026 Budget.”
Enough fuel in SA
The statement further reassured people that there is sufficient fuel supply in the country to meet current and projected demand.
“Reports of shortages in certain areas are largely due to localised distribution and logistical challenges driven by panic buying rather than a lack of national fuel stocks and these are expected to self-correct in the next coming days.
“Motorists and businesses are encouraged to purchase fuel responsibly and avoid unnecessary stockpiling.”
Western Cape petrol situation
Western Cape Premier Alan Winde, welcoming the news of the fuel levy cut, said he went to one of the petrol stations in the province and confirmed that its tanks are fairly low ahead of Wednesday’s increase.
While we welcome the move to cut the fuel levy to cushion the blow on our residents and economy, we must reiterate that fuel supply in the Western Cape is stable.
— Premier Alan Winde (@alanwinde) March 31, 2026
There is no shortage of fuel. I urge fuel suppliers not to withhold supply. pic.twitter.com/WEq3XTKc32
“[There is] a few thousands of litres left in the holding tanks here,” he said. “They are not sure when their next delivery is coming and that is the problem. We are being assured there is enough fuel in the overall system, the logistics to getting fuel to these fuel stations is a bit of an issue.
“At the moment in the province we have 30 stations across the province that do not have diesel and 20 stations that actually have no petrol. And it is a logistics issue of getting fuel to those stations.”