South Africa: Treasury Drops Diesel Levy to Zero for May

29 April 2026
Scrolla (Johannesburg)
By Dylan Bettencourt
  • Finance Minister Enoch Godongwana says the government will keep the R3 relief for petrol in May to block big increases.
  • The government is dropping the diesel levy to zero to protect drivers from a massive wholesale price jump next month.

South African drivers are getting a lifeline to survive another massive petrol and diesel price increase in May.

The government is extending its fuel levy relief. This will protect motorists from big price increases caused by the war in Iran and a weak rand.

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In April, the government chopped the general fuel levy by R3 a litre. Finance Minister Enoch Godongwana announced on Tuesday that this help will continue in May.

Drivers need the relief because 95 unleaded petrol will jump by more than R2 a litre on 6 May.

The government is also pushing the relief on diesel up by 93 cents to R3.93 a litre. This drops the diesel levy down to zero.

Godongwana said they are taking this step because wholesale diesel prices could shoot up by more than R5.40 a litre in May.

Even with the extra help, the price of diesel will break past R30 a litre in Gauteng.

The Treasury said the government plans to cut the relief in half in June. The help will stop completely in July.

"The estimated cost of the temporary fuel levy relief from April to June 2026 is R17.2-billion," Godongwana said.

He said higher tax collections and underspending will cover the bill, so it will not drain the national budget.

Godongwana said the government will also adjust the slate levy on petrol and diesel for May to help fuel importers pay their costs.

The slate account pays importers for the difference between the regulated fuel price and what they actually pay. A slate levy kicks in when this account falls more than R500 million in the red.

The Department of Mineral and Petroleum Resources has started reviewing the formula used to calculate fuel prices.

The endless petrol and diesel price hikes raise fears that the cost of living will shoot up. This could force higher interest rates for South Africans.

Read the original article on Scrolla.

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