Motorists in South Africa could pay less for petrol and diesel in November after Treasury announced a temporary cut to the General Fuel Levy, IOL reported.
Finance Minister Enoch Godongwana announced the relief during his Medium-Term Budget Policy Statement in Parliament on Wednesday. The cut starts on 4 November.
From 4 November until 1 December, the levy will be R3 lower for diesel and R1.50 lower for petrol. From 1 December until 5 January, the cut drops to R1.50 for diesel and R1 for petrol.
“The temporary levy reductions will provide some breathing space for motorists and businesses that depend on vehicles for their livelihoods,” said Brandon Cohen, chairperson of the National Automobile Dealers’ Association (NADA).
IOL said oil prices have moved up and down sharply, so the November adjustment is hard to predict. The latest Central Energy Fund data still shows petrol under-recoveries of between R1.37 and R1.46 a litre.
A small over-recovery has also appeared in recent days. If this continues, the petrol increase could stay below R1 a litre. With the levy cut, that would mean a drop of 50 cents or more at the pumps.
For diesel, projections point to an increase of about R1.25 a litre, which could rise slightly by month end. Even so, diesel users could still see a cut of R1.50 or more a litre, according to IOL.
If these numbers hold, petrol could cost between R28.88 and R29.75 a litre in November. Diesel could cost between R29.58 and R31.30 a litre at wholesale level, depending on grade and area.
After steep increases in October, 95 unleaded petrol costs R29.38 a litre at the coast and R30.25 in Gauteng. That is about R8.80 more than a year ago. Filling a 40-litre tank now costs around R350 more.
Diesel is also at record levels. Wholesale 500ppm diesel is R31.08 at the coast and R31.95 inland. The price of 500ppm has risen by R12.57 in a year, so a 70-litre refuel costs R880 more.
Transport costs rose by more than 10% year on year in the latest Consumer Price Index. IOL said South Africans could face record fuel prices again in January if the Middle East conflict is not resolved by year end.
Cohen said the relief must lead to lasting help for households. “Fuel levy relief helps with one component of that cost, but sustained improvements require stronger household incomes, employment growth and lower pressure on everyday expenses,” he said.
The South African National Taxi Council (SANTACO) also welcomed the relief. The council said there would be no immediate fuel-related fare increases while it keeps talking to government about longer-term relief.
Source: this article is based on reporting by IOL. Image: IOL. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.