South Africa Slashes R10 Billion in Fuel Taxes as Record Pump Prices Bite

South Africa has announced R10 billion in fuel tax relief to ease the burden on motorists and commuters facing record pump prices, even as the government lowered its economic growth forecast for 2026 [267880][267849]. The measure, announced by Finance Minister Enoch Godongwana on Wednesday, temporarily reduces the fuel levy — a tax added to every litre of fuel sold — for a limited period [268226].

The government said the tax relief aims to reduce the cost of petrol and diesel as households and businesses struggle with rising transport costs [269125]. The intervention comes as consumers face record prices at the pump, squeezing both daily commuters and commercial operators who depend on fuel to move goods and people.

Alongside the levy cut, National Treasury revised its growth projection downward, citing weaker-than-expected economic conditions [267849]. The government cautioned that the revenue gains from the relief will be short-lived and that it must still balance support for households against a weaker fiscal outlook [268226].

The twin moves signal growing concern over the country's economic outlook and rising living costs, with the government seeking to cushion consumers while acknowledging the limited room it has to spend [267849][268226].