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Treasury Reinstates Fuel Levy, Driving Petrol Prices Up for June

The partial rollback undoes part of April’s relief and raises pump prices even though CEF data show recoveries have turned positive.

Overview

  • Late-May Central Energy Fund figures showed petrol has moved into a modest over-recovery of about R0.21–R0.46 per litre while diesel has a much larger over-recovery of roughly R4.60–R5.57 per litre.
  • National Treasury confirmed it will begin phasing out the temporary fuel levy from June, reintroducing R1.50 per litre to petrol and about R1.97 per litre to diesel.
  • Economists estimate the levy rollback will push retail petrol up by roughly R1.20 or more per litre in June despite the petrol over-recovery.
  • Diesel is set to buck that trend because its over-recovery exceeds the partial levy return, leaving room for estimated wholesale falls of about R2.60–R3.30 per litre and potential retail relief.
  • The Department of Mineral and Petroleum Resources will publish official June price adjustments at month-end and policymakers, including Minister Gwede Mantashe, are discussing a proposed state-owned fuel company as a longer-term way to cut import vulnerability while the outlook remains fragile to oil and rand swings.