Godongwana announces temporary fuel-levy cuts in 2026 budget

Finance Minister Enoch Godongwana announced temporary fuel-levy cuts in the 2026 Medium Term Budget Policy Statement, alongside additional funding for provincial and local services. The package comes as National Treasury lowered its economic growth forecast and highlighted limits on the revenue available to sustain spending increases. The petrol levy will be reduced by R1.50 per litre and the diesel levy by R3 per litre from November 4 to December 1. Smaller cuts of R1 per litre for petrol and R1.50 for diesel will then apply until January 5, 2027. Godongwana said R10 billion previously transferred to the Central Energy Fund would be returned to the National Revenue Fund and placed in the contingency reserve to finance the temporary relief. The announced levy reductions do not guarantee an equivalent drop in pump prices. Those prices also depend on international fuel costs and the exchange rate, while the extent to which businesses pass lower fuel costs on to consumers remains uncertain. The measure is temporary and is scheduled to end in January. Treasury lowered its growth forecast for 2026 to 1.2%, from the 1.6% forecast in February. It expects growth of 1.6% next year and...