Madar (Pretoria) - South African Finance Minister Enoch Godongwana on Wednesday, October 21, 2026, announced a temporary cut in the general fuel levy to cushion motorists and commuters hit by record pump prices, in his Medium-Term Budget Policy Statement to Parliament, AFP and IOL reported.
The levy will be reduced by R3 per litre of diesel and R1.50 per litre of petrol from November 4 to December 1, then by R1.50 for diesel and R1 for petrol until January 5, 2027. The relief will cost R10 billion (about $611 million) in foregone revenue, offset by the return of funds transferred to the state-owned Central Energy Fund.
In October, petrol topped 30 rand a litre and paraffin, used by low-income households for cooking and heating, also climbed, according to AFP, which linked the price swings to disruption in global energy markets after the war on Iran and the closure of the Strait of Hormuz. The measure follows a similar one in March and comes ahead of next month's local government elections.
"Despite global volatility, South Africa is weathering the storm much better than its peers because we have been able to consistently take hard decisions over the last five years that have built our fiscal buffers and fortified our resilience," Godongwana said.
The government cut its 2026 growth forecast to 1.2% from 1.6% projected in February, with 1.6% expected in 2027. The Treasury raised its tax revenue forecast for the current year by R17.1 billion and projects a deficit of 3.9% of GDP in 2026/27 and gross debt of 78.2% of GDP, IOL reported.
