South Africa announced on Wednesday, 21 October, that it would bring back fuel tax relief for two months to cushion higher pump prices. Finance Minister Enoch Godongwana estimated the measure would cost 10 billion rand in forgone revenue.
The decision comes as transport and supply costs weigh on households and businesses. Lower levies can absorb part of the price paid by consumers, although the budget speech did not yet specify the reduction per litre.
South Africa had already cut fuel levies temporarily between April and June. That first relief measure cost 17.2 billion rand in revenue, according to the Treasury, before being gradually withdrawn from 1 July. The latest announcement therefore extends a fiscal response already used against high energy costs.
Fuel relief adds to the trade-offs facing a constrained budget. The Treasury now expects a consolidated deficit of 3.9% of GDP for 2026-27, slightly below the 4% forecast in February. Gross public debt levelled off at 78.4% of GDP in 2025-26, according to the minister.