Fuel Levy Cut Triggers Sharp Reactions From ANC, EFF and ActionSA

South African political parties have offered sharply divided responses to the Medium-Term Budget Policy Statement tabled by Finance Minister Enoch Godongwana on Wednesday afternoon.

The African National Congress welcomed the statement as a “People First” budget. In a detailed response, the governing party highlighted the R10 billion fuel levy relief that will return money to motorists at the pumps, the protection of all social grants, an increase in the share of spending going to local government to 10 percent for the first time, and continued investment in infrastructure.

ANC Secretary-General Fikile Mbalula briefed the media at Luthuli House and described the measures as practical support for working families in a difficult year. The party said the budget reaches into the pockets of ordinary households and leaves them with a little more, particularly through the temporary reduction in fuel levies that takes effect from 4 November.

The Economic Freedom Fighters took a more critical stance. While acknowledging the increase in the equitable share allocation to municipalities from 9.6 percent to 10 percent as a step in the right direction, the party accused the minister of using the temporary fuel relief as a political tool ahead of the local government elections.

EFF spokesperson Sinawo Thambo said the timing of the levy cut, which begins around voting day, amounts to electioneering. The party also argued that the statement lacks a clear macroeconomic plan to create jobs, drive industrialisation or meet growth targets, and continues to rely on higher taxation rather than structural economic expansion.

ActionSA described the fuel relief as welcome but too short-lived. The party said the economic fundamentals remain broken and called for longer-term solutions.

Rise Mzansi leader Songezo Zibi focused on the need for proper implementation of announced allocations, including the planned employment of labour inspectors and cost-saving measures across government.

Other parties offered more measured assessments. The Freedom Front Plus viewed the overall statement as largely positive given the difficult economic conditions, while the African Christian Democratic Party expressed concern over the downward revision of the growth forecast to 1.2 percent, saying it is insufficient to support meaningful job creation.

The contrasting reactions underline the political stakes surrounding the mini-budget, delivered just weeks before local government elections, with parties interpreting the same set of measures through very different lenses.

Source: https://x.com/sabcnews/status/2112961716187447386?s=46

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