Finance Minister Enoch Godongwana has announced another round of fuel levy reductions aimed at easing the impact of soaring petrol and diesel prices on South African consumers.
The temporary relief will take effect on 4 November 2026, with the general fuel levy reduced by R1.50 per litre for petrol and R3 per litre for diesel until 1 December.
From then, the reductions will be lowered until 5 January 2027, with the petrol levy cut by R1 per litre and the diesel levy by R1.50 per litre.
Godongwana says the intervention will provide R10 billion in relief, at an equivalent cost to the fiscus in foregone revenue.
To finance the measure, the R10 billion previously transferred to the Central Energy Fund will be returned to the National Revenue Fund and allocated to the Contingency Reserve.
The minister says the intervention is intended to ease cost-of-living pressures without undermining the sustainability of the national budget.
The announcement follows months of sharp increases in fuel prices, with motorists facing another potential hike in November.
Central Energy Fund data up to 20 October showed average under-recoveries of about R1.52 per litre for 95-octane petrol and R1.25 per litre for diesel, indicating continued pressure on local fuel prices.
In October, petrol and diesel prices reached record highs after a R3.33 per litre increase pushed petrol above R30 per litre for the first time.
The latest intervention follows a similar move by National Treasury in April, when the general fuel levy was reduced by R3 per litre.
While the new relief is expected to offer some respite to households and businesses, fuel prices are likely to remain elevated.
Based on current recovery levels, the November levy reduction may not fully offset the under-recovery on petrol, leaving a shortfall of about two cents per litre. If these conditions persist or deteriorate, motorists could still face another record petrol price.
Diesel users, however, could benefit more substantially, as the R3 per litre reduction is expected to turn a previously anticipated price increase into a decrease.
Despite the planned relief, fuel prices remain significantly higher than before the United States-Iran conflict began in February and March. Petrol prices are still more than R10 per litre higher, while diesel prices remain over R13 per litre higher, even after accounting for the forthcoming relief.
The levy reductions are intended to cushion consumers against rising transport and living costs as the government continues to assess the impact of global oil market pressures on the domestic economy.