Godongwana cuts fuel levy: Diesel drops by R3 a litre from November

South African motorists and businesses will get real relief at the pumps after Finance Minister Enoch Godongwana announced a temporary cut to the general fuel levy. Speaking during the Medium Term Budget Policy Statement in Parliament on Wednesday, he said the levy on diesel will fall by R3 per litre and the levy on petrol by R1.50 per litre from 4 November until 1 December 2026.

After that, smaller reductions will stay in place until 5 January 2027. During this second phase the diesel levy will be R1.50 lower per litre and the petrol levy R1 lower per litre. The whole package is expected to cost the government about R10 billion in lost revenue, but Treasury says it will not hurt the country’s fiscal targets.

The cuts come as fuel prices have climbed sharply. Global oil prices rose because of ongoing conflict in the Middle East, and South Africa imports most of its fuel. Many households and transport businesses have felt the pressure, especially with the festive season approaching. Godongwana said government is in a stronger position to help because it has rebuilt fiscal buffers.

“This intervention will help ease cost of living pressures without compromising the sustainability of the budget,” he told MPs.

The R10 billion will be funded by returning money that was earlier set aside for the Central Energy Fund. That money came from higher-than-expected tax revenue in the previous financial year. By using these funds, Treasury avoids adding new pressure to the budget.

This is the second time in 2026 that government has offered temporary fuel levy relief. A similar measure ran from April to June after oil prices first spiked. Officials say the latest cuts should help households stretch their money further over the holidays and give businesses, especially those that rely on diesel, some breathing room on transport costs.

Economists note that while the relief is temporary, it arrives at a useful moment. Many South Africans have struggled with higher food and transport prices this year. Lower pump prices in November and December could free up some cash for other needs before the new year.

Godongwana stressed that the measure is short-term and that fuel levy collections are expected to return to normal afterwards. For now, motorists can look forward to lower prices starting next month, giving families and companies a welcome break during a busy period.

Source: https://x.com/eNCA/status/2112889827553120547

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