Fuel levy cut brings temporary relief as economists warn of inflation risks

Finance Minister Enoch Godongwana announced a temporary fuel levy reduction as petrol prices in South Africa have climbed above R30 a litre. From November 4 to December 1, the levy will fall by R3 a litre for diesel and R1.50 for petrol, before smaller cuts apply until January 5, 2027. The R10 billion intervention will be funded by reversing an earlier transfer to the Central Energy Fund and returning the money to the National Revenue Fund. Economists warn the cost-of-living relief may be limited and inflationary pressures could return as the cuts are scaled back in 2027.