Finance Minister Enoch Godongwana is expected to announce whether government will extend the temporary fuel levy relief, as pressure mounts over rising fuel costs and renewed global oil price volatility.
South Africans are awaiting clarity today as the current fuel levy cut, introduced to ease pressure on motorists, is set to expire next Tuesday.
The relief measure reduced the fuel levy by R3 per litre, helping to offset recent steep increases. Last month alone, petrol prices rose by more than R3 per litre, while diesel increased by over R7 per litre for both grades.
However, with global oil prices climbing again amid tensions in the Middle East, further increases are expected.
The Democratic Alliance (DA) has urged Treasury to extend the relief, warning that failure to do so could trigger significant price hikes and further strain households.
DA spokesperson Mark Burke said the removal of the relief would push petrol and diesel prices up by an additional R3 per litre on top of already anticipated increases.
He warned that higher fuel costs would contribute to inflation, increase interest rates and slow economic growth.
Burke added that the party would pressure government to maintain the relief, suggesting that funding could be redirected from what it describes as surplus funds within state entities such as the Compensation Fund.
According to DA estimates, without the extension, petrol could rise by as much as R4.28 per litre and diesel by R6.41 per litre, significantly above already expected increases.
While supporting a short-term continuation of the relief, the DA has indicated it will oppose any future tax increases or additional borrowing to finance it.
Meanwhile, global energy markets remain volatile. Oil prices have edged higher as geopolitical tensions persist, including uncertainty over a reported Iranian proposal linked to the ongoing conflict in the Middle East.
The proposal, reportedly discussed through intermediaries including Pakistan, is said to involve the reopening of the Strait of Hormuz a key global shipping route in exchange for easing US pressure on Iranian ports and postponing broader negotiations on Iran’s nuclear programme.
The White House has confirmed discussions took place, but has not indicated whether US President Donald Trump will accept the proposal, as markets continue to react to developments in the region.