Enoch Godongwana cuts fuel levy by 3 rand per litre

South Africa’s Finance Minister, Enoch Godongwana, has announced a temporary reduction in the general fuel levy to ease the financial pressure on motorists and commuters. Effective from November 4 to December 1, the relief measure will see the price of diesel drop by 3 rand ($0.18) per litre, while the price of petrol will decrease by 1.50 rand per litre. The intervention is a direct response to soaring global fuel prices, which have been driven upward by international conflicts and significant market volatility.

The initiative is expected to cost the South African government approximately 10 billion rand ($611 million) in lost revenue. This marks the second time this year that the government has stepped in to provide fuel-related relief, following a similar move in March. Minister Godongwana stated that the country has been able to manage recent global economic instability more effectively than some of its peers due to what he described as prudent fiscal management over the last five years.

Despite these measures, the country’s broader economic outlook remains cautious. The government has adjusted its growth forecasts downward, projecting a 1.2 percent increase in 2026, a reduction from the previous estimate of 1.6 percent. While the fuel levy reduction provides immediate support to the public, especially ahead of upcoming local government elections, it remains a temporary fix within a challenging fiscal environment where balancing revenue loss and inflation remains a priority.