South Africa announces temporary fuel tax cuts after record pump prices
The relief will cost 10 billion rand in lost revenue, with returned Central Energy Fund transfers offsetting the shortfall.
South Africa will temporarily lower its general fuel levy after petrol and diesel prices reached record levels in October. Finance Minister Enoch Godongwana announced reductions of three rand per litre for diesel and 1.50 rand per litre for petrol during his mid-year budget speech.
Godongwana said the cuts would begin on November 4 and last through December 1, followed by a smaller reduction extending into the new year. The government expects to forgo 10 billion rand in revenue. Funds previously transferred to the state-owned Central Energy Fund will be returned to offset that cost.
South Africa imports most of its fuel and has faced supply disruptions and price volatility linked to the US-Israeli war on Iran and restrictions affecting the Strait of Hormuz. Petrol rose above 30 rand per litre in October, with diesel also exceeding that mark. Higher paraffin prices have added pressure on low-income households using it to cook and heat their homes. The new relief follows a March measure and comes ahead of local government elections.
Stronger corporate, dividend and value-added tax receipts have raised the 2026/27 revenue forecast, although much of the commodity-price-driven improvement is expected to fade. Economic growth is now forecast at 1.2 percent for 2026, compared with February's projection of 1.6 percent. Growth is expected at 1.6 percent in 2027 and two percent by 2029.
