Fuel levy cut offers relief but falls short
· Citizen
The Congress of South African Trade Unions (Cosatu) has welcomed government’s measures to mitigate the impact of the fuel price hikes, but says they are not enough.
National Treasury, together with the department of mineral resources and energy, yesterday issued a joint statement announcing that to help address the problem, there would be a temporary reduction in the general fuel levy to address fuel security concerns.
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Government’s R3 fuel levy cut eases pressure
“Minister of Finance Enoch Godongwana proposes that the general fuel levy is temporarily reduced by R3 per litre from Wednesday, 1 April 2026 to Tuesday, 5 May 2026,” the statement reads.
“This will reduce the general fuel levy for petrol from R4.10 per litre to R1.10 per litre and reduce the general fuel levy for diesel from R3.93 per litre to R0.93 per litre for one month. These amounts exclude other levies such as the Road Accident Fund levy and the carbon fuel levy.”
“It is estimated that the partial reduction in the fuel levy will cost around R6 billion in foregone tax revenue for the one-month period. The relief measure will be re-evaluated on a monthly basis for the following two months.
It urged motorists and businesses to purchase fuel responsibly and avoid unnecessary stockpiling.
Cosatu parliamentary coordinator Matthew Parks said while it appreciated the effort to cushion society from the international oil price spike, there was concern that workers, society and the economy would simply not cope with a R3 a litre hike for petrol and, more worryingly, a devastating R7 a litre hike for diesel and R11 for paraffin.
Unions warn rising costs will still strain workers
“Diesel is critical for the public transport that workers depend upon, as is paraffin for millions of working-class families.
“Workers already drowning in debt, supporting up to seven relatives each and spending an average of 40% of their meagre wages on transport, will not manage such painful price hikes.
“Cosatu is sensitive to the real fiscal pressures facing the state. We welcome the minister’s commitment to engage upon and put in place further relief to protect society and the economy from this crisis over the next three months.
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“This is urgent and important, given that no-one appears to know when the cause of this crisis, the Middle East war, ends.”
He said the trade union would continue to engage the government on a package of bold, progressive and decisive measures to cushion workers, the poor and the economy from the global crisis.
Softening impact
The Motor Industry Staff Association (Misa) also welcomed the announcement that government intends to reduce the fuel levy by R3 per litre, in line with the demand made by the union.
Misa said the fuel levy reduction would soften the impact of the sharpest fuel price hike in history, due to the global oil price surge.
Misa CEO Martlé Keyter said: “Workers are crushed by the rising cost of fuel and electricity. Families are forced to choose between commuting to work, putting food on the table and keeping the lights on. This is unsustainable.”
Keyter highlighted Namibia’s example, where its government has temporarily reduced fuel levies by 50% until June to shield consumers from higher pump prices.
South Africa must follow suit to protect its citizens, she said.
‘It’ll make a difference’ – Outa
Organisation Undoing Tax Abuse said: “It will certainly make a difference, in that it will save the road user the equivalent of R180 per tank of fuel on a 60 litre tank and R234 for diesel for 60 litres.
“Nonetheless, the hike of R2 or more for petrol and close to R6 per litre for diesel will still be a hard knock for motorists and consumers.”