CAPE TOWN, Wednesday 21 October 2026 — Finance Minister Enoch Godongwana has announced R10 billion in temporary fuel-levy relief, with reductions for petrol and diesel taking effect on 4 November as government responds to rising energy prices and pressure on household finances.
The measures were announced during Wednesday’s Medium-Term Budget Policy Statement in Parliament.
The first phase will reduce the diesel levy by R3 per litre and the petrol levy by R1.50 per litre until 1 December.
Two phases of relief
Godongwana said the reductions would be implemented in two stages.
From 4 November to 1 December 2026, the fuel levy will be reduced by R3 per litre for diesel and R1.50 per litre for petrol.
A second phase will then apply until 5 January 2027.
During that period, the diesel levy reduction will fall to R1.50 per litre, while the petrol levy reduction will be R1 per litre.
The measures are intended to reduce the effect of rising fuel costs on households and businesses.
However, the final retail price of fuel will continue to depend on other factors, including international oil prices, the exchange rate and regulated pricing adjustments.
Treasury identifies funding
Godongwana said the relief would cost government R10 billion in revenue that would otherwise have been collected through the fuel levy.
The funding will come from R10 billion previously transferred to the Central Energy Fund.
According to the minister, the money will be returned to the National Revenue Fund and placed in the contingency reserve to finance the temporary intervention.
He said the decision was made possible by improvements in government’s fiscal position.
Fuel prices remain under pressure
South Africa has experienced substantial fuel-price increases following disruptions to international oil supplies.
The conflict involving Iran, Israel and the United States has contributed to higher global energy prices.
As an importer of significant quantities of fuel, South Africa remains exposed to international price movements.
Higher transport costs also affect the prices of goods and services throughout the economy.
The temporary reductions are intended to ease these pressures while government continues its broader fiscal consolidation programme.
Relief remains temporary
The announced reductions will expire on 5 January 2027 unless government introduces further measures.
Treasury has not committed to extending the relief beyond that date.
The intervention comes as the department lowers its economic growth forecast for 2026 to 1.2%.
Godongwana said government would continue balancing cost-of-living support with the need to maintain sustainable public finances.
