Consumers will breathe a sigh of relief, following Finance Minister Enoch Godongwana’s announcement of a reduction in the general fuel levy.
The Minister made the announcement during the Medium Term Budget Policy Statement (MTBPS) delivered in Parliament on Wednesday.
Fuel increases have put strain on households and businesses, with petrol and diesel costs reaching record highs due to increases in Brent Crude Oil prices triggered by conflict in the Middle East.
“To provide temporary relief, the fuel levy will be reduced by R3 per litre for diesel and R1.50 per litre for petrol from 4 November 2026 up until to 1 December 2026.
“Thereafter, the relief will continue at a lower amount until 5 January 2027. The diesel levy will be reduced by R1.50 per litre, and the petrol levy by R1 per litre,” Godongwana stated.
These measures are expected to provide R10 billion in support for households and businesses at a fiscal cost of R10 billion in foregone revenue.
The origin is revenue overruns from 2025/26 placed in an appropriation bill to be allocated to the CEF [Central Energy Fund] … It will be surrendered back [to] be used to offset the costs of the fuel levy relief. The cost will be fully accommodated.
“To fund this support, the R10 billion that was transferred to the Central Energy Fund will be returned to the National Revenue Fund to finance this relief.
“This intervention will help to ease cost of living pressures without compromising the sustainability of the budget,” the Minister explained.
Currently, 95 Petrol costs some R30.25 inland and R29.38 at the coast per litre. – SAnews.gov.za
Source: Original report at SAnews.gov.za.
