R10b fuel relief for South Africans
Temporary price cuts for petrol and diesel starting in November aim to give South Africans relief from record-high pump prices.
South Africans will receive temporary relief at the pumps following Finance Minister Enoch Godongwana’s announcement of a general fuel levy reduction in Parliament today, October 21.
The intervention follows recent fuel price increases that pushed prices past R30 per litre on October 7, driven by a surge in global oil prices during the US-Iran conflict.
According to SAnews.gov.za, fuel price increases have placed heavy pressure on households and businesses, with petrol and diesel reaching record-high costs as the Middle East conflict drove up Brent Crude Oil prices.
“To provide temporary relief, the fuel levy will be reduced by R3 per litre for diesel and R1.50 per litre for petrol from November 4 until December 1,” said Godongwana.
“Thereafter, the relief will continue at a lower amount until January 5, 2027. The diesel levy will be reduced by R1.50 per litre, and the petrol levy by R1 per litre,” he stated.
These measures are expected to provide R10b in support for households and businesses at a fiscal cost of R10b in foregone revenue.
Godongwana said the origin is revenue overruns from 2025/ 26 placed in an appropriation bill to be allocated to the Central Energy Fund (CEF). It will be surrendered back to be used to offset the costs of the fuel levy relief, and the cost will be fully accommodated.
“To fund this support, the R10b that was transferred to the CEF 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,” he explained.
