Government Allocates R10bn for Temporary Fuel Levy Relief in South Africa

Government Allocates R10bn for Temporary Fuel Levy Relief in South Africa. Finance Minister Enoch Godongwana has announced a R10 billion allocation to the Central Energy Fund (CEF) to provide temporary fuel levy relief for households and businesses in South Africa.

The measure was announced during the Medium-Term Budget Policy Statement (MTBPS), with the government set to reduce the general fuel levy by R3 per litre for diesel and R1.50 per litre for petrol from 4 November 2026 to 1 December 2026.

The relief will continue at lower levels from 2 December 2026 until 5 January 2027. During this second period, the diesel levy will be reduced by R1.50 per litre, while the petrol levy will be reduced by R1 per litre.

Godongwana said the intervention follows significant pressure from higher fuel prices, which have affected households and businesses. The increase in fuel costs has coincided with higher Brent crude oil prices.

The government expects the measures to provide R10 billion in support at a fiscal cost of R10 billion in foregone revenue.

According to Godongwana, the funding originates from revenue overruns recorded during the 2025/26 financial year. The funds were placed in an appropriation bill for allocation to the CEF and will now be surrendered and used to offset the cost of the fuel levy relief.

“To fund this support, the R10bn that was transferred to the Central Energy Fund will be returned to the National Revenue Fund to finance this relief,” Godongwana said.

He said the intervention would help ease cost-of-living pressures without compromising the sustainability of the budget.

The temporary reduction comes as fuel prices remain a significant expense for South African consumers and businesses.

At the time of the announcement, petrol prices stood at R30.25 per litre inland and R29.38 per litre at the coast.

The government’s fuel levy intervention will therefore apply for two periods, with the largest reductions taking effect from 4 November before being scaled down from December through early January.

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