Finance Minister Enoch Godongwana announced a new reduction in the overall fuel levy: the rate for diesel fuel will be lowered by 3 and a half cents per liter, and for petrol by 1 and 50 cents per liter, starting November 4th. This is the second round of fuel tax relief this year.
These measures will be in effect until December 1st. After this date and until January 5th, the benefits will decrease: for diesel fuel, it will be 1 and 50 cents per liter, and for petrol, 1 cent per liter. In his statement on medium-term budget policy on Wednesday, Godongwana noted that these steps will provide support amounting to 10 billion, which will cost the state 10 billion in lost revenue.
To cover these 10 billion expenses, previously transferred to the Central Energy Fund (CEF), will be returned to the National Revenue Fund and placed in the reserve fund. Treasury Director Duncan Peters reported that these funds came from excess revenue in the 2025/2026 fiscal year and were allocated to the CEF in the February budget, as reported by Moneyweb. He confirmed: 'We agreed with the CEF that they would transfer these 10 billion to the National Revenue Fund.'
Godongwana linked this tax support to the war that began after the US and Israeli attack on Iran shortly after the approval of the February budget, which led to the closure of the Strait of Hormuz and rising oil prices.
Previously, the government had already reduced the levy: in April, it was decreased by 3 cents per liter for both petrol and diesel fuel. Nevertheless, on April 1st, diesel fuel prices rose by more than 7 cents per liter, and petrol prices by 3 and 06 cents per liter, after the price of Brent crude increased by approximately 55% in March, rising from about $73 to over $115 per barrel.
Continuation of Measures
After that, the relief was extended: in May, the reduction was 3 cents per liter for petrol and 3 and 93 cents per liter for diesel fuel, and in June, it was reduced to 1 and 50 cents per liter and 1 and 96 cents per liter, respectively. The government stated that the lost taxes amounting to 17.2 billion would be compensated by higher-than-expected revenue and reduced spending. These benefits ended after June.
The reduction in the fuel levy is significant for the technology sector, as mobile operators and data center operators use diesel generators for backup power, and transport fleets depend on it.