Govt slashes levy on diesel to zero, as it extends fuel relief

National Treasury has confirmed that government will extend the fuel levy relief measure that’s currently in place by a further month, and up its relief on the diesel price, to cushion consumers and businesses from the impact of the spike in oil and other energy prices amid the protracted conflict in the Middle East.

The temporary relief for diesel will be increased by 93 cents to R3.93 per litre, reducing the levy to zero, from Wednesday 6 May 2026 to Tuesday 2 June 2026. The general fuel levy for petrol will remain at R1.10 per litre.

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This comes as South Africa faces another spike in fuel prices next week, with final increases yet to be confirmed by the Department of Minerals and Energy.

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For the month of June 2026, Finance Minister Enoch Godongwana has proposed that the level of relief is halved to phase out the relief before July.

“As a result, the amount of relief from the general fuel levy will be reduced to R1.50 per litre for petrol and R1.96 per litre for diesel, effective from Wednesday 3 June 2026 to Tuesday 30 June 2026,” Treasury explained in a statement on Tuesday.

“This will increase the general fuel levy for petrol from R1.10 per litre to R2.60 per litre and increase the general fuel levy for diesel from R0.00 per litre to R1.97 per litre.”

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From 1 July onwards, the general fuel levy for petrol will return to R4.10 per litre and the general fuel levy for diesel will return to R3.93 per litre, said National Treasury.

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The estimated cost of the temporary fuel levy relief from April to June 2026 is R17.2 billion in foregone tax revenue.

“The fuel levy relief measure is designed to be revenue neutral and will be funded through a combination of higher-than-expected tax revenue and underspending and will not have an impact on the fiscal framework adopted by Parliament following the 2026 Budget,” Treasury adds.

The next adjujstment to fuel prices is expected to take effect next Wednesday, 6 May, with the DMRE set to announce changes in the next few days.

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