Fuel Levy Relief Extended. But the Clock Is Ticking.
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Your clients are paying less at the pump right now. That is not an accident, and it is not permanent. Here is what changes, when, and what it means for businesses that run on fuel.
What the government has announced
On 28 April 2026, National Treasury and the Department of Mineral and Petroleum Resources jointly announced in a Media Release an extension of the temporary fuel levy relief that was first introduced on 1 April 2026. The original relief was triggered by rising global oil prices following the ongoing Middle East conflict.
Here is how the relief breaks down going forward.
From 6 May to 2 June 2026, petrol stays at the same reduced levy of R1.10 per litre, while diesel gets extra relief. The diesel levy drops from R0.93 to R0.00 per litre, a saving of R3.93 per litre, in response to larger-than-expected diesel price increases.
From 3 June to 30 June 2026, the relief is halved to phase it out before July. Petrol moves up to R2.60 per litre and diesel rises to R1.97 per litre.
From 1 July 2026, it is back to normal. Petrol returns to R4.10 per litre and diesel to R3.93 per litre.
The total cost of the relief from April to June 2026 is R17.2 billion in foregone tax revenue. Government says it will be funded through higher-than-expected tax receipts and underspending elsewhere, so it remains revenue neutral and does not affect the fiscal framework Parliament approved in the 2026 Budget.
What this means in practice
For businesses that rely heavily on diesel, transport companies, logistics operators, farmers, and manufacturers, the May relief is significant. Zero levy on diesel for the month of May is real money, and it should show up in operating costs if your clients are buying at the right time and tracking their fuel expenses properly.
The phaseout in June is gradual by design. Treasury is clearly trying to avoid a sharp price shock when full levies return in July. But July is coming regardless, and businesses that have been shielded from the full fuel cost for three months need to be ready. If your clients have fixed-price contracts, delivery rates, or cost structures that have been based on current fuel prices, they need to revisit those numbers now, before July, not after.
It is also worth noting that the Slate levy on petrol and diesel will be adjusted for May to account for under-recovery by petroleum importers under the Self-Adjusting Slate mechanism. This is a separate adjustment from the general fuel levy relief and affects the total pump price calculation.
As covered in our earlier piece on the fuel levy hike and what it means for business, fuel levies move more often than clients realise. The accountants who track these changes are the ones who catch the cost implications before they hit the income statement.
For clients in mining, farming, or transport who claim diesel refunds, note that the levy on diesel is temporarily zero for May. Depending on how your client's refund structure is calculated, this affects the refund amount claimable. If you advise clients with diesel refund claims, check how this interacts with their current registrations and calculations. See our update on the delays to the new Diesel Refund System for the latest on that process.
What to do right now
Flag the July reset to transport-heavy and fuel-dependent clients immediately. Review any client contracts or pricing structures that were set based on current pump prices. If you have clients in qualifying sectors claiming diesel refunds, check how the zero-levy month affects their May claim. And watch for the Department of Mineral and Petroleum Resources review of the fuel price regulation formula, whose outcome will shape how fuel prices are set going forward.