R10bn Fuel Relief May Not Stop November Price Hikes
CAPE TOWN — Government’s R10 billion fuel levy package will cushion motorists against rising costs but may not prevent another increase at the pumps, fuel retailers have warned.
The South African Fuel Retailers Association’s Henry van der Merwe told Eyewitness News that fuel prices were still expected to rise sharply in November, with tensions around the Strait of Hormuz adding uncertainty to international oil markets. His warning is an industry assessment, rather than a confirmed monthly price adjustment.
Finance Minister Enoch Godongwana announced that the general fuel levy would be reduced by R1.50 a litre for petrol and R3 for diesel from 4 November to 1 December. From 2 December until 5 January 2027, the reductions will fall to R1 for petrol and R1.50 for diesel.
Those amounts are reductions in the levy component, not guaranteed decreases from current pump prices. Other movements in the monthly fuel price calculation could absorb some or all of the benefit, leaving motorists paying more despite the intervention.
For a 50-litre purchase, the initial levy reduction represents R75 on petrol or R150 on diesel compared with what the same purchase would cost without relief. The final amount paid will depend on the announced November fuel prices.
Van der Merwe said filling stations were also under pressure from declining sales, with some rural outlets closing at night to reduce operating costs. He warned that jobs were at risk and said the package did not directly increase retailers’ margins.
“Jobs are on the line,” he said, explaining that retailers receive a margin that does not automatically rise alongside the fuel price.
Government expects the temporary reductions to cost R10 billion in foregone revenue. Godongwana said funding previously transferred to the Central Energy Fund would be returned to the National Revenue Fund to cover the intervention without compromising budget sustainability.
The package therefore offers a buffer against higher costs. Whether motorists experience an actual price decrease will become clear when the November adjustments are announced.
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