Finance Minister Enoch Godongwana has announced R10 billion in temporary fuel levy relief as government moves to cushion households and businesses against rising oil prices driven by the conflict in the Middle East.

Tabling the 2026 Medium Term Budget Policy Statement (MTBPS) in Parliament yesterday, Godongwana said the conflict has pushed up global oil prices and led to a sharp rise in the cost of living for businesses and households.

“Because we have rebuilt fiscal buffers, government is in a stronger position to respond, including by providing temporary fuel levy again,” he said.

The minister told MPs that the National Treasury was aware of the pressure that rising fuel prices were placing on households and businesses.

Godongwana announced that the fuel levy will be reduced by R3 per litre for diesel and R1.50 per litre for petrol from November 4, 2026 up until December 1, 2026.

The relief will continue at a lower amount until January 5, 2027.

“These measures will provide R10 billion in support, at a fiscal cost of R10 billion in foregone revenue,” he said.

He explained that in an effort to fund the temporary relief, R10 billion that was transferred to the Central Energy Fund (CEF) will be returned to the National Revenue Fund and put into the Contingency Reserve.

“This intervention will help ease cost of living pressures without compromising the sustainability of the budget.”

Director-general Duncan Pieterse explained that the origins of the R10 billion related to revenue overrun from 2025/26 that was placed on the Special Appropriations Bill for allocation to the CEF.

Source: https://iol.co.za/capeargus/news/2026-10-22-godongwana-announces-r10bn-temporary-fuel-price-relief/