On 30 March 2026, the National Treasury and the Department of Mineral & Petroleum Resources issued a joint media release regarding the escalation of conflict in the Middle East, which has materially increased risks to global energy markets and placed significant upward pressure on domestic fuel prices. Recent data from the Central Energy Fund Group suggests historically high fuel price increases from April 2026 onward. Consultations have been held between the National Treasury and the Department to explore measures to provide short-term relief to consumers, while maintaining a stable and sustainable fuel supply system.
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 key proposals are outlined below:
Phase 1: A temporary reduction in the general fuel levy and addressing fuel security concerns:
a. The finance minister proposes that the General Fuel Levy (GFL) be temporarily reduced by R3 per litre from Wednesday, 01 April 2026, to Tuesday, 05 May 2026. This will reduce the GFL on petrol from R4.10 per litre to R1.10 per litre, and on 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 (RAF) Levy and the Carbon Fuel Levy.
b. It is estimated that the partial reduction in the Fuel Levy will cost around R6 billion in foregone tax revenue for one month. The relief measure will be re-evaluated monthly for the next two months.
c. 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 National Budget.
d. In reaching this decision, the finance minister sought to balance the socioeconomic impact on the country and welfare impact on South African consumers, specifically regarding food and transport inflation, with the fiscal objectives announced in the February 2026 National Budget.
e. Government further wishes to assure the public 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. They are expected to self-correct in the coming days. Motorists and businesses are encouraged to purchase fuel responsibly and avoid unnecessary stockpiling.
2. Phase 2: Broader package of measures:
a. The mineral and petroleum resources minister will continue work to review fuel pricing over the medium term.
b. Work is under way on a broader package of measures to support households and key sectors of the economy. Further details on additional support measures will be announced in due course.
Government remains committed to balancing economic sustainability with the need to protect consumers.