South Africans will receive another month of relief at the pumps after the government extended the temporary reduction in the general fuel levy to June, citing continued pressure on global oil markets caused by the conflict in the Middle East.
The National Treasury and the Department of Mineral and Petroleum Resources confirmed on Tuesday that the R3‑per‑litre (about $0.18) levy cut for petrol, introduced in April, will now run until 2 June while diesel relief will increase to R3.93 per litre to offset sharper expected price hikes.
The measure, originally scheduled to end on 5 May, was introduced to cushion households and businesses from rising fuel costs as global oil prices surged.
Treasury said the conflict in the Middle East has disrupted supply routes, tightened global inventories and driven sustained volatility in crude prices, with knock‑on effects for fuel‑importing countries such as South Africa.
The country relies heavily on imported refined products, making domestic pump prices highly sensitive to international market shocks.
Under the revised plan, the levy cut will be halved for the month of June as government phases out the temporary support before returning to normal rates in July.
Treasury estimates the three‑month relief package will cost R17.2 billion in foregone revenue, which it says will be offset through higher‑than‑expected tax receipts and underspending elsewhere in the budget.
Officials said the extension was necessary to ease inflationary pressure and protect economic activity as fuel costs continue to rise.
The Department of Mineral and Petroleum Resources has also begun reviewing the formula used to calculate fuel prices, a process expected to conclude next year.
The review includes adjustments to the Self‑Adjusting Slate mechanism, which compensates fuel importers for under‑recoveries when international prices spike.
JN/APA