Finance Minister Enoch Godongwana has announced a two-month cut to the general fuel levy, but motorists should not expect pump prices to fall by the full amount.
As outlined in our earlier report on the R10 billion fuel relief package, Godongwana announced the temporary relief on Wednesday.
Treasury also lowered its 2026 growth forecast to 1.2%.
The levy will drop by R1.50 per litre for petrol and R3 per litre for diesel from November 4, 2026, under the initial phase of the relief package.
The relief forms part of Godongwana’s Medium-Term Budget Policy statement, which proposes new fiscal guardrails to strengthen discipline and accountability.
To fund the intervention, the R10 billion transferred to the Central Energy Fund returns to the National Revenue Fund and moves into the Contingency Reserve.
How much is the fuel levy cut? Phase 1 and Phase 2 compared
The relief runs in two steps. Here is what you pay under each phase:
| Fuel type | Phase 1: 4 November 4 – December 1, 2026 | Phase 2: 2 December, 2026 – January 5, 2027 |
|---|---|---|
| Petrol | R1.50 per litre off | R1.00 per litre off |
| Diesel | R3.00 per litre off | R1.50 per litre off |
After January 5, 2027, the full general fuel levy returns. All amounts are reductions off the general fuel levy, not the final pump price.
How the fuel levy cut could affect petrol and diesel prices
Pump prices still depend on international oil prices and the rand-dollar exchange rate.
The levy cut will therefore not translate into an equal reduction at the pumps.
Instead, it will help offset increases driven by market conditions.
Preliminary Central Energy Fund data pointed to November petrol price increases of about R1.52 per litre and diesel increases of around R1.25.
The R1.50 petrol levy cut would largely cancel out the projected increase, potentially leaving petrol prices close to their current levels.
Diesel motorists could see a net reduction of about R1.75 per litre if those projections hold.
These figures remain estimates. The Department of Mineral and Petroleum Resources will confirm the official fuel prices ahead of November 4.
Currently, 95-octane petrol costs R30.25 per litre inland and R29.38 at the coast.
Fuel levy relief follows steep October price hikes
The intervention follows October’s fuel price increases, when petrol rose by R3.33 per litre and diesel by up to R3.24.
Motorists were already under pressure after September’s fuel price hikes, when petrol increased by R1.34 per litre and diesel by R3.15.
The temporary levy cut offers some relief after two consecutive months of increases, although the final pump prices will depend on the monthly fuel price calculations.
Fuel levy cuts will taper off in December
The relief will not remain at full strength throughout the entire period.
From December 2, 2026, until January 5, 2027, the diesel levy reduction will fall to R1.50 per litre, while the petrol reduction will drop to R1 per litre.
The full levy will return after that period.
The arrangement mirrors the fuel levy relief introduced between April and June. That intervention applied a flat R3-per-litre reduction to both petrol and diesel, before tapering in June and ending by July.
NADA welcomes temporary fuel price relief
The National Automobile Dealers’ Association (NADA) has welcomed the announcement but says households and dealerships need lasting improvements.
“The temporary levy reductions will provide some breathing space for motorists and businesses that depend on vehicles for their livelihoods,” NADA chairperson Brandon Cohen said.
Cohen said the intervention recognises the pressure transport costs place on commuters and businesses that move goods.
However, he added that fuel is only one part of vehicle affordability.
“The longer-term test will be whether they strengthen household purchasing power, improve service delivery and create conditions that allow dealerships to invest, develop skills and sustain employment,” Cohen said.
Motorists should watch for the official fuel price announcement ahead of November 4 to see how the levy changes affect petrol and diesel prices.
Also read: SANTACO holds off on taxi fare increases as it seeks government support for rising fuel costs.
