GOVT EXTENDS FUEL TAX RELIEF BY 90 DAYS TO EASE COST PRESSURES

GOVT EXTENDS FUEL TAX RELIEF BY 90 DAYS TO EASE COST PRESSURES

Government has extended the temporary suspension of excise duty on petrol and diesel, as well as the zero-rating of Value Added Tax (VAT) on the two fuel products, for a further 90 days in a move aimed at cushioning citizens and businesses from high fuel costs.

In a statement, Ministry of Information and Media Permanent Secretary Thabo Kawana said the extension would take effect from July 1, 2026, and remain in force until September 30, 2026.

Mr. Kawana said the decision had been implemented through Statutory Instrument No. 60 of 2026 under the Customs and Excise Act and Statutory Instrument No. 61 of 2026 under the Value Added Tax Act.

He explained that the Government had taken the measure in response to continued uncertainty in global energy markets arising from the ongoing crisis in the Middle East.

“The temporary suspension of excise duty on petrol and diesel, together with the zero-rating of Value Added Tax (VAT) on the two fuel products, has been extended for a further 90 days,” Mr. Kawana said.

He added that “the extension takes effect on 1st July 2026 and will remain in force until 30th September 2026.”

Mr. Kawana said the intervention was intended to protect consumers and businesses from the effects of rising international fuel prices while helping to maintain stable pump prices across the country.

“This measure is intended to continue cushioning citizens and businesses from elevated fuel costs, stabilising pump prices, and mitigating the impact of the ongoing crisis in the Middle East on global oil prices and supply chains,” he said.

He reiterated Government’s commitment to shielding the economy from external shocks and ensuring energy security through targeted policy measures.

“Government remains committed to implementing targeted interventions to protect livelihoods, support economic activity, and safeguard macroeconomic stability and energy security as the country continues to navigate external global shocks,” Mr. Kawana said.