Reduction in Fuel Levy Welcomed by Many; Good Party Deems Relief ‘Delayed’ as GIWUSA Shows Discontent

October 21, 2026 dailymirror Cape Town – Finance Minister Enoch Godongwana has revealed a reduction in the fuel levy of R1.50 per litre on petrol and R3 on diesel, effective from 4 November to 1 December.

Following this period, the cuts will decrease to R1 and R1.50 respectively, continuing until 5 January 2027.

This announcement was made during his Medium-Term Budget Policy Statement (MTBPS) on Wednesday, 21 October 2026.

Responses to the news have ranged from relief to outright disapproval.

The GOOD Party characterized the fuel relief as “welcome, yet insufficient and too brief.”

“The geopolitical pressures affecting oil prices will persist beyond January, which will continue to drive up the costs of food, goods, and public transportation. Nine weeks of limited relief will not effectively address our ongoing cost-of-living crisis,” commented GOOD Secretary General, Brett Herron.

“Moreover, there was no suggestion for a review of the General Fuel Levy, which currently functions as a general tax without a clear purpose.

“As a result, motorists and commuters will revert to full levy rates at the start of the new year.”

The GOOD Party also criticized Minister Godongwana for failing to mention the proposed Social Relief of Distress (SRD) grant.

“The speech completely omitted any mention of the SRD grant.”

The SRD Grant is a government aid initiative providing R370 monthly to unemployed adults aged 18–59 without income who meet SASSA’s means-test criteria.

According to Stats SA, the food poverty line for 2026 is R868 per person per month, while the lower-bound poverty line stands at R1 457.

“The SRD grant only covers less than 43% of the cost for a basic diet and about a quarter of the lower-bound poverty line,” Herron pointed out.

“More than 8 million unemployed adults continue to receive R370 monthly, an amount that has been frozen since April 2024. That translates to less than R13 a day.”

Regarding the R10 billion allocated for fuel relief, Mayibuye acknowledged the intervention but stated that “the petrol relief only offers half of the R3 per litre reduction we advocated for.”

Mayibuye added: “The diesel reduction only aligns with our demands during its initial stage.

“Households already facing financial strain from October’s expenses will need to wait until November for assistance.”

Mayibuye indicated that the true test of the MTBPS is its ability to alleviate hardship and enhance people’s capacity to live with dignity.

Mayibuye affirmed support for measures meeting that criterion while challenging those that leave communities in limbo as survival costs continue to climb.

While applauding various key allocations and policy measures, RISE Mzansi emphasized that temporary solutions are inadequate to tackle South Africa’s cost-of-living crisis and underlying economic issues.

The Democratic Alliance (DA), the second-largest party in the Government of National Unity, refrained from specifically commenting on the fuel levy cuts but expressed its commitment to reforms aimed at reducing government debt, maximizing taxpayer value, and decreasing the deficit through a proposed fiscal responsibility bill.

“Thus, the DA supports the actions taken by National Treasury in the MTBPS, particularly the focus on a fiscal anchor, the continuous growth of the primary surplus, and debt stabilization for the first time in almost two decades,” stated MP Kingsley Wakelin, DA Spokesperson on Finance.

“These steps are vital for restoring trust in South Africa’s public finances following the fiscal decline from 2008 to 2024.”

The Motor Industry Staff Association (MISA) expressed approval of the fuel levy relief, calling it a vital victory for workers, their families, and organized labor.

“Our members have reported being forced to choose between commuting to work and providing food for their families,” stated Martlé Keyter, Chief Executive Officer: Operations at MISA.

“MISA amplified that message directly to decision-makers, ensuring that workers’ voices were not overlooked.

“This announcement reflects the impact of organized labor and the significance of unions that tirelessly advocate for their members.

“While we appreciate the government’s response, we acknowledge that many workers are still experiencing intense financial strain.”

In response to the fuel levy cuts, the General Industries Workers Union of South Africa (GIWUSA) remarked: “This is merely a drop in the ocean.

“It fails to address the structural dominance of fuel monopolies and cartels, food price inflation, or the taxi fare cycle—‘fuel up, fare up; fuel down, fare remains the same’.”

GIWUSA criticized Finance Minister Godongwana for lacking proposals for mandatory price controls on essential food items, nationalizing the fuel and food sectors, or legally enforcing a mechanism to regulate taxi fares in accordance with actual fuel prices.

AfriForum expressed support for the temporary reduction in fuel levies.

However, AfriForum underscored that this reduction “must be coupled with more profound reforms regarding the government’s management of tax revenue.”

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