Cape Town:Consumers are set to experience some financial relief following Finance Minister Enoch Godongwana's announcement regarding the reduction of the general fuel levy. This development was revealed during the Medium Term Budget Policy Statement (MTBPS) delivered in Parliament.
According to South African Government News Agency, the announcement comes as a response to the rising fuel costs that have been straining households and businesses due to the increased Brent Crude Oil prices, influenced by ongoing conflict in the Middle East. To mitigate these pressures, the fuel levy will be temporarily reduced by R3 per litre for diesel and R1.50 per litre for petrol from November 4, 2026, to December 1, 2026. Following this period, the relief will continue at a reduced rate until January 5, 2027, with a diesel levy reduction of R1.50 per litre and a petrol levy reduction of R1 per litre.
These measures are expected to provide significant support to households and businesses, with an estimated fiscal cost of R10 billion in foregone revenue. The funding for this relief will be sourced from revenue overruns from the 2025/26 financial year, which will be allocated to the Central Energy Fund and subsequently returned to the National Revenue Fund to cover the costs of the fuel levy relief.
The Minister emphasized that this intervention aims to alleviate cost-of-living pressures while maintaining the sustainability of the national budget. Currently, the cost of 95 Petrol is approximately R30.25 per litre inland and R29.38 per litre at the coast.