FINANCE Minister Enoch Godongwana delivered somewhat good news for motorists, announcing a reduction in the fuel levy. The minister made the announcement during the Medium Term Budget Policy Statement (MTBPS) in Parliament today (October 21).

Also read: Rising fuel cost: How the basic fuel price is calculated

Slashed prices

Godongwana announced that the fuel levy will temporarily be reduced by R3 per litre for diesel and R1.50 per litre for petrol from November 4 up until December 1.

“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,” said Godongwana.

The General Fuel Levy is a tax collected on every litre of fuel aimed at funding general government spending.

Much needed relief

The news comes after fuel prices hit a record high in October with petrol boarding the R30 a litre mark.

“This intervention will help to ease cost of living pressures without compromising the sustainability of the budget,” said Godongwana.

Possible increase and decrease

While the reduction brings some relief to motorists, current data from the Central Energy Fund indicates that November can see an increase in the petrol price while diesel is projected to decrease.

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