What's changed in South African fuel and energy compliance

The most consequential recent changes have come from SARS: the 2026 Budget lifted the general fuel levy, carbon fuel levy and RAF levy from 1 April 2026, and SARS separately raised the eligible refund percentage for onland primary-sector diesel users from 80% to 100% and is rebuilding the Diesel Refund System as a standalone platform.

Reviewed by TefCo Compliance Research — last verified 15 September 2026.

In short

From 1 April 2026 the general fuel levy rose to R4.10/litre (petrol) and R3.93/litre (diesel), with the carbon fuel levy and RAF levy also increasing.
From 1 April 2026, onland primary-sector diesel refund claimants (farming, forestry, mining) can claim on 100% of eligible diesel use, up from 80%.
SARS is modernising the Diesel Refund System onto a standalone platform, decoupled from the VAT return process; the new registration system opened later than first announced.

2026 Budget: fuel levy, carbon levy and RAF levy increases

In the February 2026 Budget, the Minister of Finance announced increases effective 1 April 2026: the general fuel levy rose by 9c/litre for petrol (to R4.10/litre) and 8c/litre for diesel (to R3.93/litre); the carbon fuel levy rose by 5c/litre for petrol (to 19c) and 6c/litre for diesel (to 23c); and the RAF levy rose by 7c/litre to R2.25/litre for petrol and R2.24/litre for diesel [5](https://www.businessday.co.za/motoring/2026-02-25-budget-2026-godongwana-hikes-fuel-levies/).

SARS gave effect to these changes by substituting the relevant Note in Part 3 of Schedule 6 to the Customs and Excise Act 91 of 1964, effective 1 April 2026 [12](https://www.freightnews.co.za/article/general-fuel-levy-and-raf-levy-tariff-amendments).

These cents-per-litre figures change most years after the February Budget — verify the current rate on SARS's excise duty and levy schedule before pricing or invoicing.

Diesel refund: 80% to 100% for onland primary sectors

Effective 1 April 2026, SARS increased the allowable diesel refund for onland primary-sector claimants (farming, forestry and mining) from 80% to 100% of eligible diesel use, under rebate item 670.04 of Schedule 6 to the Customs and Excise Act 91 of 1964 [9](https://www.sars.gov.za/latest-news/excise-increase-in-diesel-refund-claims-from-80-to-100/). SARS said the new rate would only reflect from the return covering the month the change took effect — practically, the May 2026 VAT return [8](https://www.sars.gov.za/latest-news/adjustment-to-diesel-refund-for-onland-users-in-farming-forestry-and-mining-sectors/).

Diesel Refund System modernisation

SARS is building a dedicated registration and claims platform for diesel refunds, separate from the VAT system, under Schedule 6 to the Customs and Excise Act. SARS held its first stakeholder information session in November 2025 and confirmed in a 25 March 2026 update that the new registration system would open later than initially communicated, to allow more time for piloting and testing [7](https://www.sars.gov.za/customs-and-excise/excise/diesel-refund-system/).

Sellers and users of diesel who currently claim refunds through the VAT return should watch for the SARS go-live date for the standalone system rather than assuming current processes will continue unchanged.

Frequently asked

Has the Petroleum Products Act licensing process itself changed recently?

No recent amendment to the site and retail licensing regulations was found in this review — the process still runs through DMPR 39 applications, published notice, a 90-day decision period and the annual DMPR 33 return [1](https://www.gov.za/services/petroleum/petroleum-site-and-retail-licence). Confirm directly with DMPR if in doubt.

Does the 100% diesel refund apply to offshore or harbour vessel users too?

The 100% change applies to onland primary-sector users (farming, forestry, mining). Offshore, harbour and rail categories have their own separate refund rates set out in the same Schedule 6 notes — check the current SARS notice for the rate applicable to your category [12](https://www.freightnews.co.za/article/general-fuel-levy-and-raf-levy-tariff-amendments).

Sources

TefCo Corporate Compliance (Pty) Ltd is a compliance management platform, not a legal, tax or advisory firm. This guide is general information, not advice. Fees, dates and thresholds change — confirm current figures with the regulator before you rely on them.