Government Cuts Fuel Levy to Ease Pressure on Motorists

Finance Minister Enoch Godongwana has announced a temporary cut to the fuel levy. The levy will drop by R3 per litre on diesel and R1.50 per litre on petrol. The change takes effect from 4 November and will run until 1 December.

The move aims to give motorists, taxi operators, and businesses some relief from high fuel prices. Many South Africans have felt the squeeze at the pumps as global oil prices climbed because of conflicts in the Middle East. South Africa imports most of its fuel, so local prices move quickly when world markets rise. The minister said the government wants to help households and industry without damaging the country’s finances.

After 1 December the relief will continue at a smaller rate until 5 January 2027. From that date the diesel levy will be cut by R1.50 per litre and the petrol levy by R1 per litre. Officials expect the full package of cuts to cost about R10 billion in lost tax revenue. The money will come from extra revenue the government already collected in the last financial year, not from new borrowing. This keeps the budget stable while still offering help at the pumps.

The announcement formed part of the Medium-Term Budget Policy Statement delivered in Parliament on Wednesday. Godongwana noted that the government is in a stronger position than before because it has rebuilt its financial buffers. He said the temporary cut will ease cost-of-living pressures without putting the country’s long-term plans at risk.

This is the second round of fuel-levy relief this year. Earlier in 2026 the government also lowered the levy for a few months after oil prices jumped. Fuel prices have since climbed again, with some grades of petrol rising above R30 a litre in recent weeks. Transport costs affect the price of food and many other goods, so lower fuel taxes can help slow the rise in the cost of living.

Motorists should see the lower levy reflected in pump prices from the first week of November. Industry groups and labour unions had called for action as rising transport costs hurt workers and small businesses. While the cut is only temporary, officials say it will give people breathing room through the busy end-of-year period. The government has also set aside funds to handle possible droughts linked to the expected El Niño weather pattern.

Source: https://x.com/Newzroom405/status/2112891869734777293