Fuel taxes come to R6.58 on a litre of 93 petrol and R6.45 on diesel in 2026/27, according to National Treasury’s 2026 Budget Review. Three levies and a small duty make up that total. The Budget sets two of the levies, and the Carbon Tax Act drives the third.
What are the levies?
The general fuel levy is the largest. The Budget Review proposed R4.10 a litre on petrol and R3.93 on diesel from 1 April 2026. The Road Accident Fund (RAF) levy is R2.25 a litre on both fuels. A carbon fuel levy adds 19c on petrol and 23c on diesel, and customs and excise duty adds 4c.
The retail price of diesel is not regulated, so Treasury’s table uses the wholesale price for it. Fuel taxes were 32.9% of the Gauteng price of 93 petrol in February 2026, and 36.0% of the wholesale price of diesel.
Who sets them, and when?
The finance minister proposes the general fuel levy and the RAF levy in the February Budget, and the new rates take effect on 1 April. For 2026 the Budget Review proposed raising the general fuel levy by less than inflation, and the RAF levy by 7c from R2.18. It said the combined increase in the general fuel, carbon fuel and RAF levies is in line with expected inflation.
The carbon fuel levy is not set by the minister at the Budget. The Budget Review said the Carbon Tax Act requires the increase, after the carbon tax rose from R236 to R308 a tonne of carbon dioxide equivalent on 1 January 2026.
PetrolDiesel
Source: National Treasury, statements of 31 March and 28 April 2026 and the 2026 Budget Review; Rand Desk calculation for 4 November onwards. Chart: Rand Desk
Can the minister change the general fuel levy mid-year?
Yes, and in 2026 the minister did so three times. On 31 March, Enoch Godongwana and Mineral and Petroleum Resources Minister Gwede Mantashe announced a R3 a litre cut, citing the Middle East conflict. It ran from 1 April to 5 May. On 28 April Treasury extended the petrol cut to 2 June, and cut the diesel levy to zero from 6 May.
For June it halved the relief, and the full levy returned from 1 July. Treasury put the cost of the April to June relief at R17.2 billion in foregone revenue.
What is the relief now?
In the Medium-Term Budget Policy Statement on 21 October, Godongwana announced a new cut from 4 November. The general fuel levy falls by R1.50 a litre on petrol and R3 on diesel until 1 December. From 2 December to 5 January 2027 the cuts are R1 and R1.50. Godongwana said the relief gives R10 billion in support at a cost of R10 billion in foregone revenue. Treasury will pay for it by taking back the R10 billion it moved to the Central Energy Fund and placing it in the Contingency Reserve.
Where does the money go?
The speech did not say what share of the levy goes where. It did say the government is increasing the general fuel levy allocation by R13.4 billion over the medium term, restoring the metros’ share to 23%.
What does it mean for a pump price?
The levies are fixed rand amounts, not percentages, so a change shows up in full. Oil and the rand also move the price, as how South Africa’s fuel price is set explains. The levy relief is scheduled to end on 5 January 2027.
