LIMPOPO – Motorists across South Africa will experience another increase in fuel prices in May as the temporary tax relief measure comes to an end.

At the centre of the issue is the General Fuel Levy. This is a fixed tax charged on every litre of petrol and diesel sold in the country.

Unlike some other fuel-related charges, this levy does not go towards road maintenance. Instead, it is paid into the national treasury and used to fund a wide range of government services, including healthcare, education and infrastructure.

The levy is collected by the South African Revenue Service (SARS) from fuel manufacturers and importers, and is built into the price motorists pay at the pump.

Because it is a fixed amount per litre, rather than a percentage, it provides government with a stable and predictable source of income, regardless of fluctuations in global fuel prices.

It is also separate from the Road Accident Fund (RAF) levy, which is specifically used to compensate victims of road accidents.

What makes up your fuel price

The price motorists pay at the pump is made up of several components. These include the general fuel levy, the RAF levy, transport and storage costs, as well as wholesale and retail margins.

According to Statistics South Africa, the general fuel levy accounts for a significant portion of the overall fuel price, making it one of the key drivers of what consumers ultimately pay.

Why prices are set to rise

The beginning of April saw government introduce a temporary R3 per litre reduction in the general fuel levy as a cost-of-living relief measure. This brought the levy down to just over R1 per litre for petrol, with similar reductions applied to diesel.

However, this relief is only temporary and is scheduled to expire on May 5. If it is not extended, motorists will automatically see a R3 per litre increase when the levy returns to its normal level.

Data from the Central Energy Fund (CEF) from late March 2026 indicated that fuel prices were already on track to surpass any previous monthly hike recorded in South Africa, even before factoring in levy changes.

The current record dates back to July 2022, when petrol rose by R2.57 per litre in the wake of global market disruptions following Russia’s invasion of Ukraine.

Back in March, the CEF calculated that petrol was already priced about R4.68 to R5.20 per litre below where it should have been.  

The cost of the relief: SARS warns of a looming shortfall

SARS has cautioned that this temporary levy break comes with its own price tag.

Speaking at a briefing, incoming commissioner Dr Ngobani Johnstone Makhubu said the government’s decision to cut the fuel levy will eventually have to be paid for, and ordinary taxpayers are likely to shoulder the burden.

 The fuel levy relief is going to cost around R6 billion, Makhubu explained, adding that it will need to be recovered elsewhere.

“We do expect that we may be asked to work extra hard to get that,” he said, referring to increased pressure on SARS to ramp up collections.

Makhubu and his team are now expected to step up enforcement and revenue-raising efforts to make up the difference.

Ceasefire hope short-lived

Earlier hopes for stability came from a temporary truce between the United States and Iran, which helped calm oil markets and raised expectations of gradually easing fuel prices. However, that optimism has since been overtaken by fresh geopolitical turmoil.

After the US naval blockade of the Strait of Hormuz went into full effect, it directly interfered with international shipping and reignited fears of oil supply shocks that could drive up South African fuel prices even further.

The blockade was launched after diplomatic talks collapsed in Islamabad.

Latest CEF projections for May

According to Business Tech, the most recent data from CEF projects the following increases:

Note: These figures do not yet include the restoration of the R3 General Fuel Levy.

What motorists can expect

The final May price will depend on whether government extends or allows the expiry of the temporary R3 levy relief.

Scenario 1: If the levy relief is extended, prices remain consistent with the above figures.

Scenario 2: If the levy relief expires as expected, all projected prices then increase by R3.

If the second scenario materialises, it would shatter the previous record of R2.57 set in July 2022, becoming by far the largest single-month fuel price increase in South African history.

Impact on a 45-litre tank