No immediate fuel tax relief as October price hikes loom, RAS review to finish in March 2027

Mineral and Petroleum Resources Minister Gwede Mantashe has told Parliament that the government has no immediate intervention planned to cushion households and businesses from rising fuel costs, as market volatility persists and October price increases loom.

Parliamentary question raises prospect of relief

The statement came in response to a parliamentary question from uMkhonto weSizwe Party MP Adil Nchabeleng, who asked what urgent measures the department had put in place to ease the impact of rising fuel prices. Mantashe said there were currently no interventions planned and that the department continues to administer fuel prices transparently as prescribed by legislation.

Regulatory Accounting System review and price components

Mantashe said the department is undertaking a review of the Regulatory Accounting System (RAS), which is used to determine margins that form part of the fuel-price structure. The review is due to be concluded in March 2027, the minister said.

He also said the department has already reviewed the Basic Fuel Price (BFP) component of the price structure in light of the current geopolitical landscape, which has contributed to increased petroleum product prices.

Slate levy changes intended to secure supply

Mantashe said proposed changes to the administration of the slate levy are intended to ensure the ongoing supply of fuel in the country for the duration of the current conflict in the Middle East.

October price projections

IOL cited Central Energy Fund calculations showing early October snapshots that point to sharp increases:

• R2.02 potential increase for 93 Unleaded petrol
• R2.14 potential increase for 95 Unleaded petrol
• R1.71 potential increase for diesel (500ppm)
• R2.05 potential increase for diesel (50ppm)

What the minister said

“The Department is also undertaking the review of the Regulatory accounting system which will bring about equitable, fair and transparent margins across the fuel value chain,” Mantashe said.

He added:

“Changes proposed in the slate levy administration are meant to ensure ongoing supply on fuels in the country for the duration of this current conflict in the Middle East”

The department’s position reflects ongoing market volatility and a focus on reviewing the fuel-pricing system rather than introducing immediate tax relief.