South Africa cuts fuel taxes temporarily as prices surge

South Africa’s government has announced a temporary reduction in fuel taxes to ease the impact of rising petrol and diesel prices, which officials attribute to heightened tensions in the Middle East and pressure on global energy markets.

Under the measure, the excise component on petrol will fall from 4.10 rand to 1.10 rand per litre, while the levy on diesel will drop from 3.93 rand to 0.93 rand per litre over the same period, Caliber.Az reports via foreign media.

Other charges included in fuel prices, such as the Road Accident Fund levy and the carbon tax, will remain unchanged.

Thus, in a joint statement issued on March 31, Finance Minister Enoch Godongwana and Mineral and Petroleum Resources Minister Gwede Mantashe said the country will reduce the general fuel levy by 3 rand per litre from April 1 to May 5, 2026.

Officials estimate the temporary tax cut will reduce government revenue by around 6 billion rand over the course of a month. The policy will be reviewed monthly over the next two months.

The government has said the move is intended to limit the knock-on effects of higher fuel costs on consumers, particularly through transport and food prices.

It added that the revenue shortfall would be managed within the framework of the 2026 national budget, with no additional fiscal impact expected.

By Aghakazim Guliyev