Business · Economy · 3 hrs ago
South Africa announces R10bn in temporary fuel levy cuts
South African Finance Minister Enoch Godongwana announced R10bn in temporary fuel relief in the government’s medium-term budget statement.
From 4 November to 1 December, the fuel levy will fall by R1.50 a litre for petrol and R3 for diesel.
The cuts will then shrink until 5 January, giving diesel users such as farmers and freight operators the larger break.
The government will fund the relief by returning money set aside for the Central Energy Fund to the National Revenue Fund.
The lower levies may ease some costs, but they do not guarantee cheaper taxi fares or food, and the relief is temporary.
The Treasury has cut its 2026 growth forecast to 1.2% from 1.6%, while warning that some of the extra revenue supporting spending may not last.
The levy reductions end on 5 January, so households cannot count on them as a lasting cut in transport costs.
Finance Minister Enoch Godongwana announced temporary fuel levy cuts, with a larger reduction for diesel than petrol.
From 4 November to 1 December, the levy will fall by R3 a litre for diesel and R1.50 a litre for petrol.
From 1 December to 5 January, the reductions will shrink to R1.50 a litre for diesel and R1 a litre for petrol.
The government says the relief will provide R10 billion in support and will be funded by returning R10 billion to the National Revenue Fund.
The diesel reduction is expected to ease costs for businesses that rely on diesel, though the effect on prices for consumers is uncertain.
- Who
- Finance Minister Enoch Godongwana announced the fuel levy cuts.
- What
- The government will temporarily cut fuel levies, with a larger reduction for diesel than petrol.
- When
- From 4 November to 1 December, followed by smaller cuts until 5 January. The articles do not state the year for these dates.
- Where
- South Africa.
- Why
- To ease cost-of-living pressures amid rising fuel costs. Godongwana linked the relief to higher oil prices after the Strait of Hormuz closed.
This story does not have two clearly opposing sides.
The government set aside R10-billion for the Central Energy Fund.
The government first cut the fuel levy by R3 a litre on petrol and diesel.
The relief was extended, then reduced before ending after June.
The new levy cuts are due to take effect at their larger rates.
The smaller levy cuts are due to apply.
- First-period diesel cut
- R3 a litre
- First-period petrol cut
- R1.50 a litre
- Later diesel cut
- R1.50 a litre
- Later petrol cut
- R1 a litre
- Funding
- R10 billion returned to the National Revenue Fund
- Relief period
- 4 November to 5 January
3 sources
What people are saying
This intervention will help ease cost-of-living pressures without compromising the sustainability of the budget
We have agreed with the CEF that they are going to surrender that R10-billion into the National Revenue Fund