Fuel Levy Cut 2026: R3 off Diesel and R1.50 off Petrol From 4 November
Published: 21 October 2026 · Updated: 21 October 2026
Quick answer: Finance Minister Enoch Godongwana has announced a temporary cut to the general fuel levy. From 4 November until 1 December 2026, the levy falls by R3 per litre on diesel and R1.50 per litre on petrol. From 2 December 2026 to 5 January 2027, the reduction shrinks to R1.50 per litre on diesel and R1 per litre on petrol. He announced it in the Medium-Term Budget Policy Statement (MTBPS) on Wednesday 21 October 2026. moneywebdailyinvestor
Fuel levy relief at a glance
| Period | Diesel levy cut | Petrol levy cut |
|---|---|---|
| 4 November to 1 December 2026 | R3.00 per litre | R1.50 per litre |
| 2 December 2026 to 5 January 2027 | R1.50 per litre | R1.00 per litre |
| Key fact | Detail |
|---|---|
| Announced | Wednesday 21 October 2026, in the MTBPS |
| Announced by | Finance Minister Enoch Godongwana |
| Cost | R10 billion in foregone tax revenue |
| Funding | By returning the amount transferred to the Central Energy Fund to the National Revenue Fund |
| Type | Temporary reduction of the general fuel levy dailyinvestormoneyweb |
How much could you save?
Based on the levy reduction alone, a full tank saves roughly:
| Tank size | Diesel, phase 1 (R3) | Petrol, phase 1 (R1.50) | Diesel, phase 2 (R1.50) | Petrol, phase 2 (R1) |
|---|---|---|---|---|
| 40 litres | R120 | R60 | R60 | R40 |
| 50 litres | R150 | R75 | R75 | R50 |
| 70 litres | R210 | R105 | R105 | R70 |
These figures are the levy cut only. They are not a forecast of what the pump price will be.
Will pump prices actually fall?
Not necessarily. The levy cut is one part of the fuel price. The monthly fuel price adjustment, which normally takes effect on the first Wednesday of the month, also depends on international oil prices and the rand. A levy cut can reduce an increase rather than produce a fall. Reports note that motorists are watching the November adjustment to see how much relief reaches their pockets. The official November price announcement from the Department of Mineral and Petroleum Resources will show the net result. ghanamma
Why is the government cutting the levy?
Petrol and diesel prices reached record levels in October, putting pressure on households and businesses. The announcement followed calls from labour unions, political parties and civil society. Godongwana said the government is better placed to respond because it has rebuilt fiscal buffers. africaninsideriol
Is this the first time this year?
No. Treasury estimates that temporary levy reductions between April and June 2026 cost R17.2 billion in foregone revenue. Those measures were later scaled back and withdrawn as fuel costs continued to climb. moneyweb
Who benefits most?
- Diesel users get the larger cut, which matters for transport, logistics, farming and public transport.
- Commuters and households may see smaller petrol relief.
- Businesses may see lower transport costs, though it isn’t guaranteed that shops or operators pass savings on.
What happens after 5 January 2027?
The relief ends on 5 January 2027. The MTBPS expects fuel levy collections to normalise after the relief provided in 2026/27. Motorists shouldn’t assume the lower levy will continue. Godongwana said permanently offsetting these increases through the budget would shift the cost to taxpayers or increase borrowing. moneywebafricaninsider
Frequently asked questions
How much is the fuel levy cut?
R3 per litre on diesel and R1.50 per litre on petrol from 4 November to 1 December 2026, then R1.50 and R1 until 5 January 2027.
When does the fuel levy cut start?
On 4 November 2026.
When does it end?
The larger cut ends on 1 December 2026. A smaller cut runs from 2 December to 5 January 2027.
Who announced it?
Finance Minister Enoch Godongwana, in the MTBPS on 21 October 2026.
How much will it cost the government?
About R10 billion in foregone tax revenue.
Will petrol be cheaper on 4 November?
It depends on the November fuel price adjustment, which also reflects oil prices and the rand. The levy cut reduces the price from what it would otherwise be.
Is the fuel levy the same as the fuel price?
No. The levy is one component of the price.
Is the cut permanent?
No. It is temporary and ends on 5 January 2027.
Has there been a fuel levy cut before in 2026?
Yes, between April and June 2026.
How much will I save on a 50-litre tank?
About R150 on diesel and R75 on petrol in the first phase, based on the levy cut alone.
