South Africa extends fuel tax cuts to cushion households from effect of Mideast war

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SA's Finance Minister has extended the fuel subsidy to SA consumers. Picture: AA

The South Africa government extended temporary fuel tax relief for May and June to shield households from rising fuel prices driven by the war in the Middle East, according to a statement on Tuesday.

Petrol is expected to increase by R1,77 per litre for 93, while 95 grade will go up by R2,07 per litre. Diesel will increase by around R5,40 a litre.

The Ministry of Finance and the Department of Mineral and Petroleum Resources said the continuation of the war has kept pressure on global oil prices, leading to higher domestic fuel prices.

The government said the R3-per-litre reduction in the general fuel levy for petrol, first announced March 31, will be extended until June 2.

For diesel, temporary relief will be increased by 99 cents, to about R3,97 per litre, from May 6 to June 2, reducing the diesel levy to zero.

The general fuel levy for petrol will remain at R1,16 per liter, while the diesel levy will fall from about R1 per litre to zero.

For June, the Ministry of Finance proposed halving the relief to gradually phase out the measure before July.

The government said the measure is designed to be revenue-neutral and will be funded through a combination of higher-than-expected tax revenue and underspending, without affecting the fiscal framework adopted by parliament following the 2026 budget.

The Department of Mineral and Petroleum Resources has also started a review of the fuel price formula, whose conclusion will determine how fuel prices are regulated going forward.

The statement added that, under the self-adjusting slate mechanism, the under-recovery of importers of petroleum products must also be accommodated, meaning the slate levy on petrol and diesel will be adjusted for May. – AA

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