Fuel Levy Cut Softens Petrol Price Hike for Motorists

Government believes the fuel levy intervention has played an important role in easing pressure on households and businesses during a period of fluctuating global energy prices.

South African motorists are paying more for petrol from today, but government says a temporary reduction in the general fuel levy is helping to protect consumers from even larger increases while limiting the impact on inflation and household budgets.

The latest fuel price adjustments, announced by the Department of Petroleum and Mineral Resources (DMPR), bring mixed news for consumers. Petrol prices have increased, while diesel, paraffin and liquefied petroleum (LP) gas users will benefit from significant reductions.

Government believes the fuel levy intervention has played an important role in easing pressure on households and businesses during a period of fluctuating global energy prices.

Levy Relief Helps Limit Impact on Consumers

According to the DMPR, the temporary fuel levy relief introduced earlier this year remains in effect until 30 June 2026.

The department confirmed that the amount of relief has been adjusted to R1.50 per litre for petrol and R1.96 per litre for diesel.

Treasury Director-General Dr Duncan Pieterse said the temporary reduction in the general fuel levy between April and June has cost the fiscus approximately R17.2 billion.

He explained that the measure is being funded through stronger-than-expected fiscal performance recorded during the previous financial year, allowing government to provide relief without placing additional strain on public finances.

Pieterse noted that South Africa previously adopted a similar approach in 2022 following global fuel market disruptions caused by the Russia-Ukraine conflict.

Government has also indicated that any future relief measures will need to be accommodated within existing departmental budgets.

Mixed Fuel Price Changes Take Effect

Motorists using petrol will face higher costs at the pumps this month.

The latest adjustments include:

• Petrol 93 (ULP and LRP): Increase of R1.43 per litre.

• Petrol 95 (ULP and LRP): Increase of R1.43 per litre.

• Diesel 0.05% sulphur: Decrease of R3.24 per litre.

• Diesel 0.005% sulphur: Decrease of R2.61 per litre.

• Illuminating paraffin (wholesale): Decrease of R5.96 per litre.

• Single Maximum National Retail Price for illuminating paraffin: Decrease of R7.95 per litre.

• LP Gas: Decrease of 17 cents per kilogram nationally and 20 cents per kilogram in the Western Cape.

The substantial decreases in diesel and paraffin prices are expected to provide relief to transport operators, businesses and households that rely on these fuels.

Lower Global Demand Drives Diesel and Paraffin Cuts

The DMPR attributed the sharp reductions in diesel and paraffin prices to lower seasonal demand in the northern hemisphere as warmer weather reduces heating fuel consumption.

These market conditions contributed to lower basic fuel prices, resulting in reductions of 30.42 cents per litre for petrol, R5.42 per litre for diesel and R5.82 per litre for illuminating paraffin before other pricing factors were applied.

The department also noted that international prices for propane and butane, which determine LP gas prices, remained largely unchanged during the review period. Lower freight costs, however, contributed to the reduction in LP gas prices.

While petrol users face higher costs this month, government says the combination of fuel levy relief and lower prices for diesel, paraffin and gas will help ease financial pressure on consumers and support economic stability.