Finance Minister Confirms R3 Fuel Levy Reduction As Oil Prices Surge Amid Middle East Conflict
- Finance Minister Enoch Godongwana has discussed what will be done about the country's fuel levy to address the rising oil prices
- Godongwana also confirmed that further discussions would take place to discuss adjustments for May and June 2026
- Fuel prices have risen globally amid the shortage of supply brought about by the ongoing conflict in the Middle East
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Byron Pillay, a Briefly News journalist, has dedicated a decade to reporting on the South African political landscape, crime, and social issues. He worked as a newspaper journalist for 10 years before transitioning to online.
GAUTENG – There is finally some relief for motorists as the South African government has addressed the rising fuel prices.
The South African government will reduce a tax that was imposed on fuel to offset the impact of the surging oil prices on domestic gasoline. Oil prices have surged following the ongoing conflict in the Middle East.
The conflict started on 28 February 2026, when the United States and Israel launched a joint military operation against Iran. Iran retaliated by launching missiles and drones at neighbouring Persian Gulf countries. Iran also blocked off the Strait of Hormuz, preventing much of the global oil supply from reaching its destinations.
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South Africa to reduce fuel levy
Speaking at the 6th South Africa Investment Conference in Johannesburg on Tuesday, 31 March 2026, Finance Minister Enoch Godongwana confirmed that the levy would be reduced.
The minister stated that the levy would be reduced by R3 ($0.18) per litre for both gasoline and diesel in April. He stated that the measure would be announced at a briefing later in the day.
“I will temporarily be lowering the fuel levy for this month of April by three rand, and then I am still discussing what we can do for the next two months,” Godongwana said.
As a result of the reduction, the general fuel levy will now be R1,10c a litre, while the diesel will be slashed from R3,93c a litre to R0,93c a litre. The levy is a tax levied on every litre of fuel sold, funding government expenditure.
The move comes ahead of an expected fuel price hike, which will take effect on 1 April 2026.
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Source: Briefly News
