A temporary cut to the fuel levy has been broadly welcomed by unions, agricultural and civil society groups, but many warn the move will offer only limited relief as cost pressures continue to mount across the economy.
Finance minister Enoch Godongwana on Tuesday announced a R3 per litre reduction in the general fuel levy from April 1 to May 5, citing rising global oil prices linked to escalating tensions in the Middle East.
The reduction has somewhat cushioned the blow of the huge fuel price increases, expected to be introduced at midnight on Wednesday, as petrol rises by R3.08 a litre and diesel by R7.37 a litre.
The expected rise in fuel prices has sent motorists rushing to fill up before midnight, leading to some filling stations running out of fuel.
The Tshwane Bus Service also experienced “fuel supply challenges” and announced on Tuesday morning that all its depot filling stations had run out of fuel. It said the bus service might not run its afternoon services if no alternative fuel arrangements were made.
While the intervention is expected to ease pressure on households and key sectors, several organisations say this reduction does little to address deeper structural challenges driving the cost of living.
The Federation of Unions of South Africa (Fedusa) described the measure as “necessary and overdue”, noting that workers have been absorbing repeated increases in fuel, electricity and food prices without matching income growth.
“This will provide some breathing room. But it is not enough,” Fedusa said, warning that a one-month intervention does not reflect the scale of the crisis facing workers.
Fedusa said that fuel costs feed directly into transport and food prices, meaning the impact on households was cumulative rather than temporary. It also raised concern about government’s plan to recoup lost revenue, saying workers should not be forced to “pay for relief tomorrow” through future measures.
The federation called for a full review of the fuel price structure, greater transparency and urgent engagement through Nedlac to ensure labour is included in decision-making.
Agricultural bodies AgriSA and Agbiz echoed similar concerns despite welcoming the intervention.
They said the levy cut came at a critical time, with fuel costs already pushing up food prices and placing a strain across the agricultural value chain.
The organisations noted that the measure represented about R6bn in relief for the country and consumers.
They said fuel accounted for between 12% and 18% of production costs in farming, making it a key driver of price increases. The organisations said the relief could help buffer consumers against further food inflation in the short term.
However, they cautioned that farmers are facing a combination of rising input costs, supply constraints and uncertainty ahead of key planting seasons.
“While the temporary fuel levy relief is a positive and necessary step, it should be seen as part of a broader set of interventions required to stabilise the system,” said Agbiz and AgriSA.
They also pointed to rising fertiliser costs, which can account for up to half of production expenses, as another major pressure point linked to global disruptions.
Government cannot keep reacting at the last minute while households and businesses carry the uncertainty.
— Wayne Duvenage, Outa CEO
AgriSA and Agbiz called for additional targeted measures, including more flexible fuel price adjustments, improved transparency on fuel stock levels, a possible reduction in the Road Accident Fund levy and a full diesel rebate for primary users.
“The organisations also note the government’s intention to pursue a broader package of support measures and a review of the fuel pricing framework over the medium term.
“This process will be critical in addressing structural inefficiencies and ensuring that the fuel pricing system remains aligned with the needs of key productive sectors of the economy, in particular the agricultural value chain.”
The Organisation Undoing Tax Abuse (Outa) said while the relief was welcome, it came too late.
Outa said South Africans and businesses were left in the dark while the scale of the impending increases became clear well before month-end.
It said 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,” said Wayne Duvenage, Outa CEO.
He said the relief should have been communicated earlier to allow people time 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.
Outa said the relief would still help to reduce the immediate pressure on already stretched households and limit the knock-on increases in public transport and the cost of basic goods in the coming weeks.
Outa said government needed to act earlier when fuel pressures were clearly building.
Decisions should be communicated at least a week in advance of the next fuel price adjustment on May 6, to avoid unnecessary uncertainty and volatility.
Ernst van Zyl, head of public relations at AfriForum, said the announcement showed that sustained public pressure could influence policy decisions.
The organisation said more transparency was needed, particularly around the country’s strategic fuel reserves, which have been the subject of past controversy.
It also argued that the broader tax burden on fuel remained too high, claiming that roughly a third of the pump price consists of taxes and levies. The group called for a wider debate on permanently reducing these costs.
Meanwhile, Build One South Africa (Bosa) said it had pushed for urgent intervention through parliamentary processes and public action, including a picket outside the National Treasury on Tuesday.
Bosa leader Mmusi Maimane welcomed the announcement as “a necessary step in the right direction” but stressed that it should not be a one-off intervention.
“South Africans require sustained and meaningful relief from persistently high fuel costs,” Bosa said, adding it would continue pushing for a comprehensive review of the fuel levy structure.
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