South Africa will reintroduce temporary fuel levy relief totaling R10 billion ($609 million) starting November 4 to ease soaring cost-of-living burdens on consumers and businesses.
The fiscal intervention was officially announced by Finance Minister Enoch Godongwana during his Medium-Term Budget Policy Statement (MTBPS) in Parliament on Wednesday.
The phased relief slashes the fuel levy by R3.00 per litre for diesel and R1.50 per litre for petrol through December 1. Cuts then taper to R1.50 and R1.00 respectively until January 5.
National Treasury Director-General Duncan Pieterse confirmed the fiscal package is funded by transferring a R10 billion revenue overrun from the Central Energy Fund back to the National Revenue Fund, preventing unfunded debt creation.
The measure comes as Brent crude oil surging past $100 a barrel pushed domestic pump prices to record highs in October, with petrol crossing R30 per litre.
This follows earlier government intervention this year, bringing total fuel tax relief provided by National Treasury in 2026 to R27 billion amid persistent global supply shocks.
While the package offers immediate relief, National Treasury trimmed its 2026 economic growth forecast to 1.2%, citing broader global headwinds, high interest rates, and ongoing structural constraints.
