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South Africa cuts fuel levy until January 2027

By , based on Daily Maverick

South Africa cuts fuel levy until January 2027US Embassy South Africa · CC BY 2.0

South African Finance Minister Enoch Godongwana announced a temporary cut in the fuel levy to reduce petrol and diesel prices until January 2027. His budget also provides several allocations, including 3.8 billion rand to strengthen social services tackling gender-based violence, according to the Daily Maverick.

South African Finance Minister Enoch Godongwana announced a reduction in the fuel levy until January 2027 in his Medium-Term Budget Policy Statement, the Daily Maverick reports. The measure is intended to ease petrol and diesel prices, two weeks ahead of the municipal elections on 4 November.

The government also plans to allocate 365.87 million rand to the Madlanga Commission, 823.1 million rand to Operation Prosper, conducted by the army and police against gangs and illegal mining, and 3.8 billion rand to fund 3,500 social workers tackling gender-based violence and femicide. A further 810 million rand is earmarked for police vehicles.

The special allocations total 6.9 billion rand. They include 4.4 billion rand for the South African Revenue Service and 918 million rand for Parliament to continue rebuilding the National Assembly after the fire in January 2022. The Department of Home Affairs will receive 304 million rand for large-scale repatriations and deportations, as well as an additional 1 billion rand for the operations of the Border Management Authority.

The union Cosatu said the budget did not do enough to address unemployment, estimated at 43.8%, or weak growth. MK Party and EFF MPs described the fuel levy cut as electioneering. ActionSA MP Alan Beesley, meanwhile, regretted that the reduction was not greater.

The measure follows discussions about easing fuel prices in South Africa. President Cyril Ramaphosa had raised the possibility in a previous article on fuel price relief.

Summary produced with the help of artificial intelligence tools, under AFREEQUE’s editorial responsibility.

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