South Africa’s motorists get a welcome fuel price surprise

South Africa’s motorists are set for temporary fuel price relief after Finance Minister Enoch Godongwana announced cuts to the general fuel levy during his Medium Term Budget Policy Statement (MTBPS) in Parliament on Wednesday, 21 October.

LIVE MTBPS 2026 | Fuel price relief, tax and spending in focus

The measures will reduce the levy on diesel by R3 per litre and petrol by R1.50 per litre from 4 November to 1 December 2026, before a smaller reduction takes effect for the following period.

The announcement comes as record-high fuel prices put mounting pressure on households and businesses, with rising international oil prices amid conflict in the Middle East contributing to the increases.

BY How much will the fuel levy be reduced?

Godongwana outlined a two-stage relief package designed to ease the cost of fuel for consumers.

The first phase will run from 4 November to 1 December 2026, with the following reductions:

• Petrol: R1.50 per litre
• Diesel: R3 per litre

From 2 December 2026 until 5 January 2027, the reductions will be smaller:

• Petrol: R1 per litre
• Diesel: R1.50 per litre

The relief is temporary and is intended to cushion motorists and businesses during a period of elevated fuel costs.

R10 billion allocated to fuel price relief

The government expects the intervention to provide approximately R10 billion in support for households and businesses, at an equivalent cost to the public purse in foregone revenue.

The funding will come from R10 billion in revenue overruns from the 2025/26 financial year that had been transferred to the Central Energy Fund (CEF).

Godongwana said the money would be returned to the National Revenue Fund to finance the fuel levy reductions.

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

The approach allows government to provide temporary relief without introducing an additional unfunded commitment to the budget.

What does this mean for petrol prices?

At present, 95-octane petrol costs R30.25 per litre inland and R29.38 at the coast.

The general fuel levy reduction does not automatically mean motorists will see the full levy cut reflected in pump prices in precisely the same way, as regulated fuel prices also incorporate other components.

However, all else being equal, the levy reductions should lower the fuel price motorists would otherwise pay during the relief periods.

The actual November pump prices will depend on the applicable fuel price adjustments and other pricing components.

Relief for households and businesses

Fuel prices affect far more than motorists. Higher diesel costs can increase the cost of transporting goods, operating machinery and delivering services, with knock-on effects for food prices and other household expenses.

The temporary levy reductions are therefore intended to provide relief to both consumers and businesses while the government continues to manage pressure on public finances.

For motorists, the key dates to watch are 4 November, when the larger reductions begin, and 2 December, when the relief decreases.