South African motorists are expected to receive some relief at the pumps from Wednesday, November 4, with temporary fuel tax reductions set to ease petrol and diesel prices.
The latest month-end data from the Central Energy Fund (CEF) points to a potential reduction of 50 cents per litre for 95 Unleaded petrol and 93 cents for 93 Unleaded, averaging a decrease of around 42 cents across both grades.
Diesel prices are expected to decline by R1.58 per litre for 500ppm and R1.68 for 50ppm.
The anticipated reductions take into account temporary fuel relief measures announced by Finance Minister Enoch Godongwana earlier this month.
Under the measures, the General Fuel Levy will be reduced by R1.50 per litre for petrol and R3 per litre for diesel from November 4 until December 1.
The reductions will then be adjusted to R1 per litre for petrol and R1.50 for diesel from December 2 until January 5, 2027.
However, the final fuel price adjustments could still be influenced by other factors, including the Slate Levy. The Department of Mineral and Petroleum Resources is expected to announce the official prices early this week.
If the current projections materialise, motorists will pay approximately R28.96 per litre for 95 Unleaded petrol at the coast and R29.83 inland. The price of 93 Unleaded inland is expected to be around R29.46.
Meanwhile, wholesale diesel prices are projected to decline to R29.50 per litre at the coast and R30.37 inland for 500ppm, while 50ppm diesel is expected to cost R30.25 and R31.12 respectively.
Without the temporary tax relief measures, motorists could have faced petrol price increases of up to R1.16 per litre and diesel increases of R1.42.
The expected relief comes after international oil prices surged in October amid escalating tensions in the Middle East, raising concerns about possible disruptions to global oil supplies and shipping through the Strait of Hormuz.
Motorists have already endured significant fuel price increases this year, with October seeing increases of up to R3.33 per litre for petrol and R3.24 for diesel.
Petrol prices have risen by almost R10 per litre since March, while diesel has increased by approximately R13 over the same period.
Godongwana has previously indicated that government wants to eventually phase out the General Fuel Levy. However, replacing the approximately R80 billion in annual revenue generated by the levy remains a major challenge.
A review of the fuel price structure is expected to be completed by March 2027.