South African motorists may be enjoying some short-term relief at the fuel pumps, but the bigger picture suggests that tougher days could be ahead.
The government, through the National Treasury and the Department of Petroleum and Mineral Resources (DPMR), confirmed on April 28 that the temporary fuel tax relief for petrol and diesel will be extended by two months. While this move offers immediate breathing room, it comes with a gradual phase-out plan that could push prices higher again in the near future.
How the Fuel Relief Will Work
For petrol, the current relief of R3.00 per litre—introduced in April—will remain in place through May. However, it will be reduced to R1.50 per litre in June, then completely removed in July.
Diesel follows a slightly different path. The R3.00-per-litre relief in April will increase to R3.93 per litre in May, then drop to R1.96 per litre in June, and finally fall away in July.
This phased approach mirrors the strategy used back in 2022, when the government stepped in to cushion consumers from rapidly rising global fuel prices.
What It Means for Fuel Prices
Although the relief helps reduce prices immediately, its long-term effect depends on global oil trends and local pricing adjustments.
When the relief was first introduced in April, it softened what would have been a massive spike in fuel costs. Petrol, which could have increased by around R6.00 per litre, only went up by about R3.00. Diesel, which faced a potential R10.00 increase, rose by roughly R7.00 instead.
In May, petrol prices won’t see further reductions from the relief since the cut is already in place. However, diesel users will benefit slightly more, with an additional reduction of about 93 cents per litre.
The real concern begins in June and July, when the government starts reintroducing the fuel levy. While it may appear that some relief remains, the reality is that those same amounts, R1.50 for petrol and roughly R1.96 for diesel, will be added back into the price structure.
If global fuel recoveries remain negative during this period, consumers could face even steeper increases. On the other hand, if conditions improve, the hikes may be softened, but not entirely avoided.
The Slate Levy Factor
Another important factor to watch is the so-called “slate levy,” a lesser-known mechanism that can quietly push fuel prices higher.
The slate levy is essentially a balancing tool used to recover losses when international fuel prices rise faster than local pump prices. When there’s a deficit, the levy is added to fuel costs to compensate importers.
Due to sharp fluctuations in global oil prices in recent months, authorities have confirmed that the slate levy will be adjusted again in May. This could result in additional price increases, beyond what consumers might expect from standard fuel price calculations.
Who Pays for the Relief?
While the tax relief is helping consumers now, it comes at a significant cost to government revenue.
National Treasury estimates that the temporary measure will result in about R17.2 billion in lost tax income between April and June 2026. However, the relief is designed to be revenue-neutral—meaning the government plans to recover those losses elsewhere.
In practical terms, this could translate into tighter tax collection efforts, likely led by the South African Revenue Service. Increased enforcement and improved tax compliance may shift the burden back onto taxpayers in other ways.
For now, South Africans can enjoy some relief at the pumps. But with the gradual return of fuel levies, potential price adjustments, and additional charges like the slate levy, the outlook remains uncertain.
The message is clear: while the pressure has eased slightly, it hasn’t disappeared—and motorists should prepare for possible increases in the months ahead.
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