South Africa's Finance Minister Enoch Godongwana is set to announce on 28 April whether to extend the temporary fuel levy reduction amid rising fiscal pressures and global energy risks. The decision follows a R3 per litre cut in the levy, which has cost the government R6 billion in foregone revenue for the month.
Finance Minister Enoch Godongwana told the National Assembly last week that he is considering the extension of the fuel levy relief, implemented in March with a R3 per litre reduction effective from 1 May.
The review comes amid heightened risks to global energy markets from the US-Israel war on Iran, prompting requests to maintain the relief for the war's duration. Godongwana stated, “The extension of the fuel levy, I am applying my mind to that issue at the appropriate time, because I promised South Africans that at the end of the month I would do a review after consulting the stubborn Minister Mantashe. I will probably make the necessary announcement on the 28th, on Tuesday, in that regard.”
Despite the South African Revenue Service collecting R2 trillion in the 2025/2026 financial year—a record achievement—government expenditure stands at R2.4 trillion, leaving a R400 billion shortfall. Godongwana noted that debt-servicing costs are similarly high, requiring about R800 billion in borrowing this year.
Chief Economist at PSG Financial Services, Johann Els, has unpacked expectations around the announcement as fuel prices continue to pressure households and businesses.
