South Africa Cuts Fuel Levies to Ease Cost of Living

Finance Minister Enoch Godongwana announced a 10 billion rand temporary fuel levy reduction to alleviate cost-of-living pressures for South African households and businesses. The intervention responds to record pump prices driven by global oil supply interruptions following attacks by Israel and the United States on Iran and the subsequent closure of the Strait of Hormuz.

Starting November 4 and running through December 1, 2026, the levy will be reduced by 3 rand per litre for diesel and 1.50 rand for petrol. A secondary, lower relief phase will follow from December 2 until January 5, 2027, with reductions of 1.50 rand for diesel and 1 rand for petrol.

The National Treasury will fund the 10 billion rand in foregone revenue through rebuilt fiscal buffers and the return of 10 billion rand from the state-owned Central Energy Fund to the National Revenue Fund. This follows previous cuts implemented between April and June.

While the government reported a 54.1 billion rand revenue overrun in corporate and VAT collections, Godongwana lowered South Africa's economic growth forecast for the year from 1.6 percent to 1.2 percent.