South Africa’s temporary general fuel levy reduction, which has kept petrol prices significantly lower since it was introduced in April 2026, will be phased out before the end of June, with the full levy reinstated from 1 July, according to statements from the National Treasury and the Department of Mineral and Petroleum Resources.
The relief was introduced in response to fuel prices driven sharply higher by the Iran-US war and the disruption of global oil supply routes through the Strait of Hormuz.
The temporary reduction of R3.00 per litre has cost the government an estimated R17.2 billion in foregone tax revenue since April, and Treasury has now confirmed the measure will be wound down in two stages before the end of June.
What the phase-down looks like at the pump
From 3 June 2026, the petrol levy relief will drop from R3.00 per litre to R1.50 per litre, increasing the general fuel levy for petrol from its current reduced rate of R1.10 per litre to R2.60 per litre.
For diesel, the levy, which has effectively been zero during the relief period, rises to R1.97 per litre over the same window.
From 1 July 2026, the full general fuel levy returns. For petrol, this means R4.10 per litre. For diesel, R3.93 per litre. On a standard 60-litre fill, the return to pre-relief levy rates represents an additional cost of up to R180 compared to what motorists are currently paying.
This assumes all other pricing components, including the basic fuel price and the road accident fund levy, remain unchanged.
The government’s position
National Treasury has described the relief as “revenue neutral,” funded through a combination of higher-than-expected tax revenue and underspending elsewhere in the budget.
The extension of the full R3.00 reduction through May was granted to ease pressure on households over the Freedom Day public holiday period, as reported by Business Day.
Minister Enoch Godongwana extended the relief to June before confirming the phase-down schedule, with the diesel levy also cut to zero for the same period, as reported by The Citizen.
The final size of July’s fuel price will depend not only on the levy reinstatement but on the rand-dollar exchange rate and where global oil prices settle. The UAE’s exit from OPEC, announced this week, adds a layer of additional uncertainty to supply dynamics.
Motorists should expect pump prices to begin rising from the first Wednesday of June, in line with the monthly adjustment cycle administered by the Department of Mineral and Petroleum Resources.
