Chris Gilili|Published
Motorists will get temporary fuel price relief from November 4, with Finance Minister Enoch Godongwana announcing a R3-a-litre cut in the diesel levy and a R1.50-a-litre reduction in the petrol levy in his Medium-Term Budget Policy Statement (MTBPS) on Wednesday.
The relief will initially run until December 1, 2026, before continuing at reduced levels until January 5, 2027. The measures will provide R10 billion in support at a fiscal cost of R10 billion in foregone revenue.
Godongwana also announced R3.8 billion to fight gender-based violence and femicide (GBVF), including funding to recruit more than 3,500 social workers, as well as additional allocations for police investigative capacity and the judiciary.
However, the Congress of South African Trade Unions (COSATU) criticised the lack of further funding for public employment programmes and inflation relief for social grant recipients.
Fuel levy cuts to provide temporary relief
Following calls from labour unions, political parties and civil society, Godongwana announced temporary reductions in the fuel levy to ease pressure on motorists.
The levy will be reduced by R3 per litre for diesel and R1.50 per litre for petrol from November 4 to December 1, 2026.
“Thereafter, the relief will continue at a lower amount until 5 January 2027. The diesel levy will then be reduced by R1.50 per litre and the petrol levy by R1 per litre. These measures will provide R10 billion in support, at a fiscal cost of R10 billion in foregone revenue,” he said.
Treasury commits billions to fighting GBVF
The National Treasury has allocated R3.8 billion to fight GBVF and a further R157.4 million to the Department of Women, Youth and Persons with Disabilities.
Godongwana said the allocations were intended to give effect to President Cyril Ramaphosa’s announcement concerning the unacceptably high levels of GBV in South Africa.
He said the R3.8 billion would fund the recruitment of more than 3,500 social workers, specifically to strengthen prevention amid rising murders and attacks on women.
Treasury has also allocated R186 million to strengthen forensic and investigative capacity in the police.
“We are expanding sexual offences courts from 55 to 101 and increasing the number of countrywide Thuthuzela Care Centres that provide support to rape victims, from 72 to 80, by 2028/29,” Godongwana said.
More funding to combat crime and corruption
Godongwana said government had allocated R2.2 billion over the medium term to combat crime and corruption, including R514 million for commissions of inquiry, such as the Madlanga Commission of Inquiry.
“Crime and corruption weaken governance and hold back the economy. It robs the fiscus of funds intended for service delivery and raises the cost of doing business. We are recapitalising the South African Police Service fleet at a cost of R810 million next year,” Godongwana said.
A further R2.2 billion over the medium term has been allocated to strengthen the independence of the judiciary.
Government considers measures to tackle illegal migration
Godongwana said that, in addition to allocations to the Border Management Authority (BMA) this year, Treasury was increasing the number of labour inspectors.
“The government is also considering measures to strengthen the capacity of the border inspectorate and the immigration officers to address our challenges with illegal migration,” he said.
COSATU welcomes fuel relief but criticises jobs funding
COSATU parliamentary coordinator Matthew Parks welcomed the announcement, saying the federation appreciated government’s response to calls for relief for the working class and the economy through a R10 billion fuel levy holiday.
“This will ease the burden on commuters, inject money in the economy, lower inflation and hopefully prevent a November repo rate hike. An overhaul of the fuel taxes and levy is needed, including fixing the Road Accident Fund,” Parks said.
However, Parks said it was disappointing that no further allocations had been made to boost public employment programmes and provide hope to 12 million unemployed people.
“It is beyond shameful that despite R13 billion worth of savings in social grants, yet again there is no inflationary relief for the 8 million destitute SRD Grant recipients.”