South Africa cuts fuel levy as pump prices hit records
Diesel drops by R3 a litre and petrol by R1.50 from 4 November to 1 December, funded by money returned from the Central Energy Fund.
Cape Town — South African motorists will pay less at the pump for a month. Finance Minister Enoch Godongwana used his mid-term budget speech to announce a cut in the general fuel levy, Africanews reports, after petrol and diesel prices topped R30 a litre in October.
The relief
- Diesel: R3 a litre off the levy.
- Petrol: R1.50 a litre off.
- When: 4 November to 1 December 2026, with a smaller cut continuing into the new year.
- Cost: about R10 billion in revenue, offset by returning money that had been transferred to the state-owned Central Energy Fund.
A similar measure was taken in March. Paraffin prices have also risen, hitting low-income households that use it for cooking and heating.
Why prices are high
South Africa imports most of its fuel, and prices have swung with supply disruption linked to the war involving Iran and the choking of the Strait of Hormuz.
The bigger picture
Godongwana said South Africa was weathering global volatility better than its peers. Stronger corporate, dividend and VAT collections lifted the 2026/27 tax forecast, though much of that comes from commodity prices that are expected to fade. Growth is forecast at 1.2% for 2026, rising to 1.6% in 2027 and 2% by 2029, and public debt is projected to stabilise at 78.4% of GDP, the first such pause in nearly two decades. Local government elections take place next month.
Source: Africanews / AP, 21 October 2026.
