Godongwana’s R10 billion petrol price relief sees prices fall by 1 cent per litre

Motorists using petrol will experience minimal relief at the pumps in November, with the fuel levy relief announced by the Finance Minister resulting in a 1 cent per litre price reduction.

Diesel users will be happier, with prices falling by R1.10 per litre and R1.20 per litre, respectively. 

This will help reduce inflation in the country, with 80% of goods being transported by road in South Africa before they reach the end consumer. 

The falling prices were revealed by the Department of Mineral and Petroleum Resources (DMPR) when it announced the official fuel price changes on 3 November. 

These changes will take effect from 4 November and are the first since the Finance Minister’s relief announced in the Medium-Term Budget Policy Statement (MTBPS). 

• Petrol 93 – 1 cent per litre decrease
• Petrol 95 – 1 cent per litre decrease
• Diesel 0.05% – 110 cents per litre decrease
• Diesel 0.005% – 120 cents per litre decrease

These changes are largely due to the relief from Finance Minister Enoch Godongwana, with oil prices remaining elevated and the rand weakening slightly in October. 

This would have resulted in prices rising if there had been no intervention from the Finance Minister. 

The DMPR noted that the average international product prices of petrol and diesel increased during the period under review.

It explained that these prices are being driven higher by unusually high demand in the Northern Hemisphere and the ongoing Russian invasion of Ukraine. 

This is despite efforts from the G7 to release some reserve stockpiles of fuel and the waiving of some sanctions on Russia by the United States. 

Rising international product prices were coupled with a weakening rand, with the currency slumping to R16.55 per US dollar from R16.21 at the start of October. 

A weaker rand makes it more expensive for South Africa to import fuel, rising prices paid by motorists at the pump. 

These potential increases were offset by the short-term relief measures announced by Godongwana in the MTBPS on21 October. 

Godongwana announced a reduction in the General Fuel Levy of R1.50 per litre for petrol and R3.00 per litre for diesel from 4 November 2026. 

This relief will cost the government R10 billion in tax revenue and will run until January 2027. 

Unlike the R17 billion relief implemented earlier this year, the newest measure will be funded from R10 billion previously transferred to the Central Energy Fund.

This R10 billion will be returned to the National Treasury and placed into the contingency reserve. This will allow Treasury to provide relief without compromising the state’s fiscal sustainability.