South Africa has announced a temporary R3‑per‑litre cut to the general fuel levy to cushion consumers from record fuel price increases triggered by the escalating conflict in the Middle East and surging global oil prices.
The National Treasury and the Department of Mineral and Petroleum Resources confirmed on Tuesday that the one‑month reduction, effective from 1 April to 5 May, forms part of an emergency intervention to ease pressure on households and businesses.
“Consultations have been held between the National Treasury and the Department of Mineral and Petroleum Resources to explore measures to provide short-term relief to consumers, while maintaining a stable and sustainable fuel supply system,” they said in a joint statement.
“The agreed approach consists of an immediate intervention for the next month, and a broader package of measures to support households and key sectors of the economy.”
The measure is expected to cost the fiscus about R6 billion (about US$353 million) in foregone revenue.
Global oil markets have been roiled by intensifying tensions in the Middle East, a region that supplies a significant share of the world’s crude.
Disruptions to shipping routes and heightened geopolitical risk have pushed Brent crude from about US$69 to more than US$110 a barrel in recent weeks, feeding directly into South Africa’s fuel price calculations.
The levy cut comes as all grades of petrol rose by R3.06 per litre on Wednesday while diesel increases by between R7.37 and R7.51 per litre. Illuminating paraffin has recorded its steepest increase on record at R11.67 per litre.
Government said the relief measure would be reviewed monthly over the next two months and stressed that it would remain fiscally neutral, with mechanisms to recover the lost revenue within the 2026 Budget framework.
JN/APA