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PSA welcomes Fuel Levy relief, calls for stronger government intervention amid rising cost-of-living crisis


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PSA welcomes Fuel Levy relief, calls for stronger government intervention amid rising cost-of-living crisis

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PSA welcomes Fuel Levy relief, calls for stronger government intervention amid rising cost-of-living crisis

Minister of Finance Enoch Godongwana
Minister of Finance Enoch Godongwana

1st April 2026

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The Public Servants Association (PSA) notes and welcomes the announcement by the Minister of Finance, Enoch Godongwana, and the Minister of Mineral and Petroleum Resources, Gwede Mantashe, regarding short-term relief measures to address escalating fuel prices. The temporary reduction of the general fuel levy by R3 per litre, effective from 1 April 2026 to 5 May 2026, provides much needed, albeit limited, relief to workers and households already under severe financial pressure. The PSA acknowledges government’s effort to balance fiscal sustainability with the immediate socio-economic challenges facing South Africans.
 
However, the PSA is deeply concerned that this intervention, while necessary, falls short of addressing the broader and deepening cost-of-living crisis. Public servants, who recently received a modest 4% salary increase, will see this adjustment rapidly eroded by rising fuel costs.

The increase in fuel prices has a direct and cascading effect on transport, food, and other essential commodities, further straining already stretched household budgets. The PSA notes government’s assurance that the country has sufficient fuel supply and that current shortages are largely due to logistical challenges and panic buying. While this assurance is welcomed, the PSA urges government to act decisively to strengthen fuel security systems and prevent similar disruptions in future.
 
In light of the ongoing crisis, the PSA calls on government to introduce more substantial and sustained fuel price relief measures beyond the current temporary intervention and accelerate the implementation of a comprehensive support package aimed at cushioning households and vulnerable sectors of the economy. Additionally, government should ensure that public servants are adequately protected against inflationary pressures through improved wage adjustments and targeted support as well as fast-tracking the review of the fuel pricing model to ensure long-term affordability and transparency.
 
The PSA further emphasises that the escalating global energy crisis, exacerbated by geopolitical tensions in the Middle East, requires a bold and coordinated domestic response that prioritises the welfare of workers and the broader population. Government must do more to mitigate the disproportionate impact of rising fuel and living costs on public servants and working-class South Africans.

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Without decisive and sustained intervention, the current relief measures will offer only temporary reprieve while the underlying crisis continues to deepen. Furthermore, the PSA calls on the Minister of Public Service and Administration to do his bit by implementing remote working which will go a long way in easing the pressure faced by public servants.

The PSA remains committed to engaging government in pursuit of meaningful and lasting solutions that protect the livelihoods of public servants and all South Africans.

 

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