South Africa will reintroduce temporary fuel levy cuts worth 10 billion rand ($609 million) over two months from November as improved government finances give the country room to cushion consumers against high fuel costs.
Finance Minister Enoch Godongwana announced the measure on Wednesday during his mid-year budget speech, saying the relief would help ease cost-of-living pressures without undermining the sustainability of public finances.
Under the plan, the government will reduce the fuel levy on diesel by 3 rand per litre and petrol by 1.50 rand per litre from November 4 to December 1. Smaller reductions of 1.50 rand per litre for diesel and 1 rand for petrol will remain in place until January 5.
The intervention revives temporary fuel levy cuts introduced between April and June following a surge in oil prices linked to conflict in the Middle East. South Africa imports most of its fuel, leaving motorists and businesses vulnerable to fluctuations in international oil prices and exchange rates.
“Because we have rebuilt fiscal buffers, government is in a stronger position to respond, including by providing temporary fuel levy relief again,” Godongwana said.
He added that the intervention was designed to ease pressure on households while preserving the country’s fiscal position.
