South Africa may keep its temporary fuel levy relief in place beyond the initial deadline, as rising global oil prices continue to squeeze motorists and businesses. Finance Minister Enoch Godongwana said government will review the measure at the end of April to decide whether it should run past 5 May.

The pressure comes as conflict in the Middle East pushes oil prices higher, increasing the risk of another petrol price hike. That has left Treasury balancing two urgent priorities: easing pressure on consumers and protecting the country’s already strained public finances.

R6 Billion Cost Puts Pressure on the Fiscus

Godongwana announced the R3 fuel levy cut at the start of April as a one-month intervention. The relief has already cost government about R6 billion, making any extension a costly move at a time when public finances are under severe pressure.

Speaking in Washington during the spring meetings of the International Monetary Fund and World Bank, Godongwana said the fiscus cannot support a long-term subsidy. He said South Africa simply does not have the money to keep covering elevated fuel costs for an extended period.

He added that government could survive for as long as three months if necessary, but stressed that this would be a hard deadline. That means any extra relief would likely be temporary rather than a long-term shield against high fuel prices.

Uncertainty Remains Over Paraffin Support

Questions also remain over whether any future extension would include illuminating paraffin. The fuel is widely used by poorer households, and groups have criticised Treasury for not offering similar relief there. For now, there is no clear indication that paraffin will be added to the support package.

Godongwana also said Treasury cannot yet fully measure the economic damage linked to the latest oil shock. That uncertainty makes the next few weeks critical for households already battling rising living costs.

Bigger Risks for Households and the Economy

Independent economist John Loos warned that higher oil prices are likely to drag on global growth, with South Africa unlikely to escape the fallout. He suggested government may have to consider the most effective form of support, but cautioned that temporary grants can become difficult to withdraw once introduced.

For now, South Africans are left waiting for Treasury’s next move. The decision at the end of April could offer short-term relief at the pumps, but it will not remove the deeper fiscal and economic risks now facing the country.