R3 per litre petrol and diesel price relief for South African motorists

While delivering the Medium-Term Budget Policy Statement, Finance Minister Enoch Godongwana announced that the government is implementing a temporary fuel levy reduction totalling R10 billion in foregone revenue.

The relief is funded by returning money previously transferred to the Central Energy Fund (CEF) to the National Revenue Fund (NRF), where it is placed into the Contingency Reserve.

“Geopolitical conflict has pushed up global oil prices and led to a sharp rise in the cost of living for businesses and households,” said Minister Godongwana.

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

The relief will once again be delivered in two distinct phases covering both petrol and diesel, and will be implemented as follows:

• 4 November 2026 – 1 December 2026 – The diesel levy is reduced by R3.00 per litre, and the petrol levy is reduced by R1.50 per litre.
• 2 December 2026 – 5 January 2027 – The relief continues at reduced rates of R1.50 per litre for diesel and R1.00 per litre for petrol

The Minister confirmed that the fuel levy collections are expected to normalise starting in the 2027/28 financial year.

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

Petrol prices could still increase next month

Despite the Finance Minister’s announcement, a petrol price increase could still be on the cards considering the latest CEF recovery data.

While the relief will be welcomed by consumers and the various groups that have been calling for it, fuel prices remain extremely elevated.

South African inland motorists are already paying R30.25 per litre for petrol 95, which is a whopping R9.95 more per litre than in March 2026.

Diesel followed a similar trend, reaching a record-breaking R33.29 per litre wholesale price for 0.005% diesel at inland forecourts in October 2026.

Looking towards next month, current recovery levels indicate the November relief won’t be enough to fully eliminate the under-recovery in petrol, with a 2-cents-per-litre increase still on the cards.

This would mean a new record high for petrol prices in South Africa, while the R3 per litre relief for diesel is expected to bring its price back to below its current record-high levels.

Below is a breakdown of how next month’s relief could affect South African motorists:

It is worth remembering that prices are still well over R10 per litre higher than before the US-Iran War broke out at the end of February.

Diesel prices are also more than R13 per litre higher over the same period, even when considering the imminent relief.