South Africa announces R10bn temporary fuel-levy relief in 2026 MTBPS; growth cut to 1.2%

On 21 October 2026 Finance Minister Enoch Godongwana announced a R10 billion temporary reduction in the general fuel levy in the 2026 MTBPS: diesel levy cut by R3/litre and petrol by R1.50/litre from 4 November to 1 December 2026, with smaller reductions until 5 January; Treasury also cut 2026 growth to about 1.2%.

The levy cuts are fiscal-policy changes that reduce near-term tax receipts by a stated R10bn and are intended to ease cost-of-living pressure and support consumption. They do not change the budget’s medium-term commitments: Treasury says the relief is temporary and funded by returning a prior R10bn transfer, so market implications hinge on whether one-off receipts and surrendered surpluses persist and on parliamentary approval of the appropriation.

Parliamentary approval of the proposed R10bn allocation and the Central Energy Funds surrender of funds to the National Revenue Fund.