Finance Minister Enoch Godongwana has moved to cushion South Africans from a looming fuel price shock, announcing an extension of the R3 per litre reduction in the petrol levy until June.

In a more aggressive intervention, government will also implement a R3.93 per litre relief on diesel — effectively wiping out the diesel levy altogether for the same period. The move is expected to bring critical breathing room to the transport, logistics and agricultural sectors, which rely heavily on diesel.

The decision comes against the backdrop of steep projected fuel hikes, with data from the Central Energy Fund pointing to sharp increases from the first Wednesday of May. Diesel is expected to surge by as much as R5.42 per litre, while 95 octane petrol could climb by more than R2 per litre.

Godongwana said the temporary tax relief is a calculated attempt to soften the inflationary blow that would follow such increases. Rising fuel prices typically ripple through the economy, pushing up the cost of goods and services, particularly food and transport.

At the heart of the surge is renewed instability in global oil markets, driven in part by escalating tensions linked to the ongoing Israel–Hamas War. These geopolitical pressures have tightened supply expectations and driven crude oil prices higher.

By absorbing part of the cost through reduced levies, National Treasury is effectively trading off short-term revenue to protect economic stability and consumer spending power.

However, the relief is temporary — and while it may blunt the immediate impact, South Africans could still face sustained pressure at the pumps if global oil volatility persists.

This article was originally posted by EWN