By: Noluthando Mchunu
Finance Minister Enoch Godongwana says the estimated cost of the temporary fuel levy relief from April to June 2026 is R17.2 billion in foregone tax revenue.
Government has extended the R3.00 per litre reduction in the fuel levy for both petrol and diesel until the end of June. The relief measure, first introduced to cushion consumers from rising fuel costs, will continue to provide short-term support to households and businesses grappling with high transport and logistics expenses.
Godongwana says the extension is a strategic intervention aimed at containing anticipated higher inflation, driven in part by surging global oil prices. Brent crude oil prices have remained volatile amid ongoing geopolitical tensions and supply constraints, placing upward pressure on domestic fuel prices.
Economists have noted that while the relief eases immediate cost pressures, it also reduces government revenue at a time when public finances remain constrained. The National Treasury is expected to reassess the measure ahead of the mid-year budget review, weighing the benefits of continued relief against fiscal sustainability.
