South Africa lowers fuel levy amid global energy pressures

In a joint statement on March 31, Finance Minister Enoch Godongwana and Mineral and Petroleum Resources Minister Gwede Mantashe said the government would temporarily reduce the country’s general fuel levy by 3 rand per liter from April 1 to May 5, 2026.

The measure will lower the levy on petrol from 4.10 rand to 1.10 rand per liter and on diesel from 3.93 rand to 0.93 rand per liter for one month. Other charges included in the fuel price, such as the Road Accident Fund levy and the carbon fuel levy, will remain unchanged.

Officials estimate the tax reduction will reduce government revenue by about 6 billion rand during the one-month period. The measure will be reviewed monthly for the following 2 months. Authorities say the relief will remain fiscally neutral because the lost revenue will be recovered later within the budget framework approved for 2026.

The government said the decision aimed to limit the impact of higher fuel costs on consumers, particularly through rising transport and food prices.

Officials also sought to reassure the public that the country has sufficient fuel supplies. Reports of shortages in some areas are mainly due to local distribution problems and panic buying rather than a lack of national fuel reserves, the statement said. Motorists and businesses were urged to avoid unnecessary stockpiling.

As part of a second phase of measures, the government said it is reviewing the fuel pricing system and preparing a broader support package for households and key sectors of the economy. Further details are expected to be announced later.

Earlier, Qazinform News Agency reported that Australia halved fuel tax and offered free public transport as prices surge.