New SA Tariff Notices: Impact on Fuel, Wheat, and Steel

Why These Tariff Changes Matter to Your Business

The South African Revenue Service (SARS) recently published nine significant tariff notices in Government Gazette No. 54678, signaling a major shift in the country’s fiscal and trade landscape. Signed by Finance Minister Enoch Godongwana, these changes—ranging from the restoration of fuel levies to adjustments in wheat and steel duties—will have a direct impact on the bottom line of South African businesses. Whether you operate in logistics, manufacturing, agriculture, or retail, understanding these shifts is essential for maintaining accurate financial forecasts and ensuring regulatory compliance.

For most SMEs and large corporations alike, the most immediate concern is the phased removal of temporary fuel levy relief. As energy and transport costs rise, the ripple effect will be felt across every supply chain in the country. Simultaneously, the adjustments in customs duties for steel and wheat present a complex environment of both increased costs and potential savings, depending on your sector and sourcing strategy.

Key Business Implications

The notices introduce several structural changes that business owners must account for in their mid-year planning:

• Two-Stage Fuel Cost Escalation: The general fuel levy is returning to its standard rates. On 3 June 2026, petrol levies will jump from 110 cents to 260 cents per litre, while diesel moves from zero to 197 cents. A second increase on 1 July 2026 will see these rates hit 410 cents for petrol and 393 cents for diesel.
• Logistics and Operational Overhead: Businesses reliant on transport and heavy machinery will face a sharp increase in operational costs. While diesel refunds for farming, forestry, and mining are being adjusted to mitigate some of this, the net cost of doing business is set to rise.
• Steel Procurement Costs: To protect local industry, customs duties on a wide range of steel products (including pipes, fasteners, and wire) have been hiked to between 10% and 30%. This will likely increase the cost of construction and manufacturing projects.
• Wheat Import Relief: In a move that may provide slight relief to the food and beverage sector, the customs duty on imported wheat and wheaten flour has been reduced. This could help millers and bakers manage input costs amidst broader inflationary pressures.
• Strategic Rebate Opportunities: A new rebate facility allows importers to apply for duty relief on specific steel products that are not available within the Southern African Customs Union (SACU). This offers a vital lifeline for downstream manufacturers who require specialized materials.

Compliance and Financial Risks

With these rapid changes comes an increased risk of non-compliance and financial miscalculation. Businesses that fail to update their accounting systems to reflect the new fuel levy rates by the June and July deadlines may find themselves with significant budget shortfalls. Furthermore, the complexity of the diesel refund system means that companies in the agricultural and mining sectors must ensure their record-keeping is impeccable to claim the correct adjusted rates (303.8 cents per litre in June and 382.2 cents in July).

In the steel sector, the risk lies in the misclassification of goods. With new duties of up to 30% applying to various items, an error in a tariff code could lead to heavy penalties or overpayment of duties.

Source: 9 New Tariff Notices: Fuel Levy Climbs, Wheat Duty Cut, Steel Tariffs Raised