Central SA
Treasury cuts fuel tax by R3 to help motorists amid price hike─── REFILWE BEKANE 12:00 Wed, 01 Apr 2026
South African motorists have received a temporary reprieve as the government implements a reduction in the general fuel levy.
Effective Wednesday (1/4), the fuel levy has been reduced by R3.00 per litre, dropping from R4.10 to R1.10 for both petrol and diesel. Prior to implementing this tax relief, the department of mineral and petroleum resources expected price increases because of rising global oil prices and a weaker rand. If not for the R3.00 reduction, diesel prices would have risen by R7.37.
Finance minister Enoch Godongwana described the move as a significant sacrifice, noting that the department will incur a revenue loss of R6b for April alone.
“I don’t even know where I’m going to find this money for now,” said Godongwana during a briefing on Tuesday (31/3).
He warned that while the relief is set to last until 5 May and could potentially extend into June, it is not sustainable, emphasising that tax decisions must be balanced against the need to maintain essential services like education and healthcare.
The Automobile Association has welcomed the temporary reduction but is urging for more permanent structural changes.
The organisation’s CEO, Bobby Ramagwede, argued that the R6b monthly cost is a necessary investment to support a struggling economy.
“One has to take into consideration that the government’s biggest problem is not revenue collection but rather expense management,” said Ramagwede
The Motor Industry Staff Association also welcomed the announcement.
The South African Petroleum Retailers Association (Sapra) chairperson Henry van der Merwe said while motorists may experience temporary pressure at the pumps, there is no need for alarm.
“From a fuel retail perspective, our members are working... to manage this heightened demand and ensure continuity of supply. We can confirm that there is sufficient product in the system,” said Van der Merwe.
Sapra emphasised that its service stations are not withholding fuel and that deliveries remain ongoing. The association noted that any temporary site-level outages are being addressed urgently, with expectations that the system will stabilise as demand normalises following the price adjustment.
• Have a news tip to share? Phone or whatsapp the OFM News Hotline: 066 487 1427.
