{"id":873087,"date":"2026-09-01T12:34:20","date_gmt":"2026-09-01T10:34:20","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=873087"},"modified":"2026-09-01T12:34:23","modified_gmt":"2026-09-01T10:34:23","slug":"urgent-petrol-price-tax-relief-in-south-africa-is-needed","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/873087\/urgent-petrol-price-tax-relief-in-south-africa-is-needed\/","title":{"rendered":"Urgent petrol price tax relief in South Africa is needed"},"content":{"rendered":"\n<p>The Public Servants Association (PSA) has called for urgent measures to cushion South Africans from the massive petrol price hikes being implemented this week.<\/p>\n\n\n\n<p>From Wednesday, 2 September 2026, <a href=\"https:\/\/businesstech.co.za\/news\/energy\/872498\/here-is-the-official-petrol-price-for-september-7\/\"><strong>the petrol price will increase<\/strong><\/a> by R1.34 per litre and the diesel price by between R2.94 and R3.15 per litre. <\/p>\n\n\n\n<p>The union, which represents 250,000 public servants, said that workers cannot afford to absorb these hikes, given that salaries have not kept up with the rising cost of living.<\/p>\n\n\n\n<p>It said that urgent measures, including immediate tax relief and long-term structural changes to fuel prices, need to be implemented.<\/p>\n\n\n\n<p>Such measures could include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reviewing the tax treatment of work-related travel<\/li>\n\n\n\n<li>Strengthening transport allowances<\/li>\n\n\n\n<li>Exploring targeted fuel-relief mechanisms for eligible workers, and <\/li>\n\n\n\n<li>Accelerating the implementation of affordable and reliable public transport<\/li>\n<\/ul>\n\n\n\n<p>More importantly, the union said the government needs to conduct a comprehensive review of the current fuel pricing and taxation framework.<\/p>\n\n\n\n<p>This would provide temporary relief when international oil price volatility and exchange rate movements result in extraordinary fuel price increases. <\/p>\n\n\n\n<p>Specifically, it said taxes should be adjusted to provide South Africans with relief.<\/p>\n\n\n\n<p>&#8220;The government previously demonstrated that intervention in the fuel-price structure is possible,&#8221; it said.<\/p>\n\n\n\n<p>&#8220;Current circumstances, therefore, require political will and decisive action rather than expecting workers to absorb yet another increase.&#8221;<\/p>\n\n\n\n<p>The PSA said that the August fuel-price adjustment demonstrated how levies can materially affect the final price paid by consumers.<\/p>\n\n\n\n<p>&#8220;This underlines the need for the government to review all available policy instruments that can ease pressure on workers without undermining fiscal sustainability,&#8221; it said.<\/p>\n\n\n\n<p>It stressed that it was not calling for unsustainable subsidies or reckless expenditure, but rather for innovative, targeted, and sustainable solutions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Multiplier effect<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/04\/godongwana-2.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/04\/godongwana-2-1024x576.jpg\" alt=\"\" class=\"wp-image-819246\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/04\/godongwana-2-1024x576.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/04\/godongwana-2-300x169.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/04\/godongwana-2-768x432.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/04\/godongwana-2.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>The PSA&#8217;s demands on the government come in the context of escalating fuel prices over the past six months, which have had a multiplier effect on the cost of living.<\/p>\n\n\n\n<p>Rising fuel prices directly increase the cost of transport, food, and other household expenses, with all South Africans bearing the burden.<\/p>\n\n\n\n<p>&#8220;These increases represent a further significant erosion of disposable income, and place additional pressure on workers who rely on private vehicles to travel to and from work\u2014particularly those serving in rural and poorly serviced areas,&#8221; the union said.<\/p>\n\n\n\n<p>It added that lower- and middle-income workers have limited capacity to absorb the costs, with the prices of electricity, education, housing, and other essentials also rising.<\/p>\n\n\n\n<p>With the fuel prices rising, many workers are moving to a situation where they&#8217;re effectively paying to work, with transport costs eating into what little income they have.<\/p>\n\n\n\n<p>The government intervened amid rising fuel prices earlier in the year, when the National Treasury removed R3.00 per litre from fuel levies in April and May 2026.<\/p>\n\n\n\n<p>These levies were then added back over June and July when global oil price pressure started easing.<\/p>\n\n\n\n<p>While this was a temporary measure to deliver immediate relief, the Department of Mineral and Petroleum Resources said it was also reviewing the local fuel price mechanism over the longer term.<\/p>\n\n\n\n<p>However, this process is only expected to be completed by March 2027.<\/p>\n\n\n\n<p>The review will look at how industry margins are calculated in South Africa. This includes wholesale margins, retail margins, secondary storage, and secondary distribution.<\/p>\n\n\n\n<p>Since prices started escalating in March 2026, petrol and diesel prices are now close to R7 and R12 per litre higher, respectively.<\/p>\n\n\n\n<p>This surge in prices has begun to filter through the economy, with consumer inflation expected to return to 5% and producer inflation also expected to rise.<\/p>\n\n\n\n<p>These factors are being assessed by the South African Reserve Bank, which may still hike interest rates in September or November, adding even more pressure on households with debt.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Post-Iran War price adjustments<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"table-responsive\"><table class=\"table\" class=\"has-fixed-layout\"><thead><tr><th>Month<\/th><th class=\"has-text-align-center\" data-align=\"center\">Petrol 95<\/th><th class=\"has-text-align-center\" data-align=\"center\">Diesel 0.005%<\/th><\/tr><\/thead><tbody><tr><td>March<\/td><td class=\"has-text-align-center\" data-align=\"center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">+R0.20<\/mark><\/td><td class=\"has-text-align-center\" data-align=\"center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">+R0.65<\/mark><\/td><\/tr><tr><td>April<\/td><td class=\"has-text-align-center\" data-align=\"center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">+R3.06<\/mark><\/td><td class=\"has-text-align-center\" data-align=\"center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">+R7.51<\/mark><\/td><\/tr><tr><td>May<\/td><td class=\"has-text-align-center\" data-align=\"center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">+R3.27<\/mark><\/td><td class=\"has-text-align-center\" data-align=\"center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">+R5.27<\/mark><\/td><\/tr><tr><td>June<\/td><td class=\"has-text-align-center\" data-align=\"center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">+R1.43<\/mark><\/td><td class=\"has-text-align-center\" data-align=\"center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">-R2.62<\/mark><\/td><\/tr><tr><td>July<\/td><td class=\"has-text-align-center\" data-align=\"center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">-R1.96<\/mark><\/td><td class=\"has-text-align-center\" data-align=\"center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">-R3.59<\/mark><\/td><\/tr><tr><td>August<\/td><td class=\"has-text-align-center\" data-align=\"center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">-R0.52<\/mark><\/td><td class=\"has-text-align-center\" data-align=\"center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">+R1.23<\/mark><\/td><\/tr><tr><td>September<\/td><td class=\"has-text-align-center\" data-align=\"center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">+R1.34<\/mark><\/td><td class=\"has-text-align-center\" data-align=\"center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">+R3.15<\/mark><\/td><\/tr><tr><td><strong>Total difference<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>+R6.82<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>+R11.60<\/strong><\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<hr 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