South Africa Unveils Measures to Ease Petrol Prices

Finance Minister Enoch Godongwana has introduced additional fuel price relief measures, with cuts to fuel levies starting on 4 November.

The finance chief revealed that the diesel levy will drop by R3 per litre and the petrol levy by R1.50 per litre, effective from 4 November 2026 until 1 December 2026.

After this initial period, the reductions will be lessened further until 5 January 2027.

The diesel levy will see a cut of R1.50 per litre, while the petrol levy will decrease by R1 per litre.

“These measures will provide R10 billion in support, at a fiscal cost of R10 billion in foregone revenue,” Godongwana stated.

To finance this relief, R10 billion previously allocated to the Central Energy Fund will return to the National Revenue Fund and be allocated to the Contingency Reserve.

“This intervention will help ease cost-of-living pressures without compromising the sustainability of the budget,” the finance minister noted.

This relief effort follows several months marked by rising petrol and diesel prices, with an increase expected in November.

As of 20 October, data from the Central Energy Fund shows average shortfalls of approximately R1.52/litre for petrol 95 and R1.25/litre for diesel.

Petrol and diesel prices reached unprecedented levels in October, with petrol surpassing R30 per litre for the first time after a R3.33 increase.

The upcoming relief follows a previous initiative by the Treasury in April, which reduced the general fuel levy by R3 per litre.

Record High Prices Still Expected

While many consumers and advocacy groups should welcome the Treasury’s relief, fuel prices remain significantly high.

Specifically, at the current recovery rates, the proposed November relief does not completely counteract the under-recovery for petrol, leaving a deficit of 2 cents per litre.

If current recovery levels continue or further decline, petrol prices are likely to reach another record high.

The outlook for diesel appears more favorable, as the R3 per litre relief is expected to convert what would have been an increase into a reduction in price.

It is also important to highlight that petrol prices are currently more than R10 per litre higher than levels prior to the onset of the US-Iran War in February and March.

Diesel prices have risen more than R13 per litre during the same timeframe, even with the rumored forthcoming relief.

Post-Iran War Price Adjustments