Fuel levy relief welcome, but late decisions and poor transparency still cost South Africans

Relief cuts the immediate shock, but late action and weak transparency continue to drive uncertainty and economic pressure

• Government reduced the fuel levy by about R3 per litre for petrol and nearly R4 for diesel, easing what would have been a far steeper increase
• OUTA says the decision came too late, despite clear warning signs of significant price hikes earlier in the month
• While the relief will limit knock-on increases in transport and food costs, it remains a short-term measure
• Greater transparency on South Africa’s strategic oil reserves and earlier communication ahead of the 6 May adjustment is needed

The Organisation Undoing Tax Abuse (OUTA)  welcomes government’s decision to reduce the fuel levy by approximately R3 per litre for petrol and close to R4 per litre for diesel. This intervention is both necessary and appropriate in helping to mitigate what would have been a severe price shock on 1 April.

But it came too late.

South Africans and businesses were left in the dark while the scale of the impending increases became clear well before month-end; in fact, it was already becoming apparent by mid-month. With petrol increases projected at around R5 per litre and up to R10 per litre for diesel, there was enough information available for earlier action.

“Government cannot keep reacting at the last minute while households and businesses carry the uncertainty,” says Wayne Duvenage, OUTA CEO. “This relief is welcome, but it should have been communicated earlier to allow people to plan and absorb the impact.”

Earlier intervention would have reduced panic, improved planning, and softened the economic ripple effects already building across transport, food prices, and essential goods.

The relief will still help. It reduces the immediate pressure on already stretched households and limits the knock-on increases in public transport and the cost of basic goods in the coming weeks.

But this is a temporary fix, not a solution.

Government needs to act earlier when fuel pressures are clearly building. Decisions should be communicated at least a week in advance of the next fuel price adjustment on the 6th May, to avoid unnecessary uncertainty and volatility. Transparency on South Africa’s strategic oil reserves must also improve, including current levels, the framework guiding their use, usage policy, and whether these reserves will be used during periods of price pressure.

“There is no justification for keeping the public in the dark on strategic oil reserves,” says Duvenage. “South Africans deserve to know what safeguards are in place and when they will be used to protect the economy.”

The next fuel price adjustment is due on 6 May. Government has an opportunity to restore some confidence by acting decisively and communicating clearly ahead of time.​

A voicenote from Wayne Duvenage is here.