Date: 31 March 2026

The escalation of conflict in the Middle East has materially increased risks to global energy markets, placing significant upward pressure on domestic fuel prices. Recent data from the Central Energy Fund Group suggests historically high fuel price increases from April 2026 as a result. Consultations have been held between the National Treasury and the Department of Mineral and Petroleum Resources to explore measures to provide short-term relief to consumers, while maintaining a stable and sustainable fuel supply system.

The agreed approach consists of an immediate intervention for the next month, and a broader package of measures to support households and key sectors of the economy.

The key proposals are outlined below:

1. Phase 1: A temporary reduction in the general fuel levy and addressing fuel security concerns:
   1. The Minister of Finance proposes that the general fuel levy is temporarily reduced by R3 per litre from Wednesday 1 April 2026 to Tuesday 5 May 2026. This will reduce the general fuel levy for petrol from R4.10 per litre to R1.10 per litre and reduce the general fuel levy for diesel from R3.93 per litre to R0.93 per litre for one month. These amounts exclude other levies such as the Road Accident Fund levy and the Carbon Fuel Levy.
   2. It is estimated that the partial reduction in the fuel levy will cost around R6 billion in foregone tax revenue for the one-month period. The relief measure will be re-evaluated on a monthly basis for the following two months.
   3. The relief measure is designed to be fiscally neutral, and the government will implement mechanisms to recoup the foregone revenue within the fiscal framework approved during the 2026 Budget.
   4. In reaching this decision, the Minister of Finance sought to balance the socio-economic impact on the country and welfare impact on South African consumers, specifically regarding food and transport inflation, with the fiscal objectives announced in the February Budget.
   5. Government further wishes to assure the public that there is sufficient fuel supply in the country to meet current and projected demand. Reports of shortages in certain areas are largely due to localised distribution and logistical challenges driven by panic buying rather than a lack of national fuel stocks and these are expected to self-correct in the next coming days. Motorists and businesses are encouraged to purchase fuel responsibly and avoid unnecessary stockpiling.

2. Phase 2: Broader package of measures:
   1. The Minister of Mineral and Petroleum Resources will continue work to review fuel pricing over the medium term.
   2. Work is underway on a broader package of measures to support households and key sectors of the economy. Further details on additional support measures will be announced in due course.
   3.  

Government remains committed to balancing economic sustainability with the need to protect consumers.

For enquiries, please contact: Ms. Lerato Ntsoko on, lerato.ntsoko@dmpr.gov.za; mediadesk@dmpr.gov.za; 0824592788 or Ms Ntsakisi Ramunasi at: Ntsakisi.Ramunasi@treasury.gov.za; Tel: (012) 315 5325, Mobile: 083 646 6935

ISSUED BY NATIONAL TREASURY AND DEPARTMENT OF MINERAL AND PETROLEUM RESOURCES ON 31 MARCH 2026