PETROL PRICE RELIEF ANNOUNCED AS GODONGWANA UNVEILS FUEL LEVY CUTS

Motorists and businesses across South Africa are set to receive temporary relief from high fuel costs following an announcement by Finance Minister Enoch Godongwana during his Medium-Term Budget Policy Statement (MTBPS) on Wednesday, 21 October 2026.

Godongwana announced that government would temporarily reduce the general fuel levy, lowering the tax burden on petrol and diesel amid rising fuel prices and mounting pressure on households.

Under the announced measures, the fuel levy on petrol will be reduced by R1.50 per litre from 4 November until 1 December 2026. The relief will then continue at a reduced level, with the petrol levy cut by R1 per litre until 5 January 2027.

For diesel, the levy will be reduced by R3 per litre during the initial period before the reduction decreases to R1.50 per litre for the subsequent period.

According to the minister, the intervention is expected to provide approximately R10 billion in support to households and businesses, at an equivalent cost to government in foregone revenue.

The announcement comes as South Africans continue to grapple with the rising cost of living, with record-high fuel prices placing additional pressure on motorists, commuters, transport operators and businesses that depend on road transportation.

Higher fuel costs also have wider economic consequences, as increased transportation and distribution expenses can contribute to rising prices for food and other essential goods.

Godongwana said the temporary intervention was made possible by improved fiscal buffers, allowing government to respond to the economic pressures facing households and businesses.

The funding will be facilitated by returning R10 billion previously transferred to the Central Energy Fund to the National Revenue Fund, where it will be used to support the relief measures.

Although the announcement offers motorists some relief, the actual pump prices will continue to depend on the country's fuel pricing arrangements and other factors affecting the cost of fuel.

The temporary reduction is intended to ease the immediate financial burden on consumers while government continues to manage the country's public finances.

Motorists are expected to benefit from the levy reduction once the measures take effect in November, although the extent of the savings at the pumps will depend on the applicable fuel pricing adjustments.