Central Energy Fund gets R10bn for fuel levy relief in South Africa

Cars queue at a Shell petrol station in Johannesburg on 31 March 2026 after the government announced it would reduce its fuel levy for a month to stop fuel prices from rising further. Image credit: Reuters/Siphiwe Sibeko/File Photo

Fuel increases have strained households and businesses, with petrol and diesel costs reaching record highs as Brent crude oil prices rose due to conflict between the US, Israel, and Iran.

“To provide temporary relief, the fuel levy will be reduced by R3 per litre for diesel and R1.50 per litre for petrol from 4 November 2026 up until 1 December 2026.

“Thereafter, the relief will continue at a lower amount until 5 January 2027. The diesel levy will be reduced by R1.50 per litre, and the petrol levy by R1 per litre,” Godongwana stated.

These measures are expected to provide R10bn in support for households and businesses at a fiscal cost of R10bn in foregone revenue.

Fuel prices in SA: R10bn from govt could bring relief to the pumps

9 Oct 2026

The minister explained that the origin is revenue overruns from 2025/26 placed in an appropriation bill to be allocated to the CEF. It will be surrendered and used to offset the costs of the fuel levy relief, ensuring the cost is fully accommodated.

“To fund this support, the R10bn that was transferred to the Central Energy Fund will be returned to the National Revenue Fund to finance this relief.

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

Currently, petrol costs R30.25 inland and R29.38 at the coast per litre.