Reduction in Fuel Levy Welcomed by Many; Good Party Deems Relief ‘Delayed’ as GIWUSA Shows Discontent
In this news:
Key takeaways
- Finance Minister Enoch Godongwana announced a temporary fuel levy reduction starting in November.
- Political parties and unions expressed mixed views, citing both relief and inadequacy.
- Debate continues over broader cost-of-living issues and government financial reforms.
Finance Minister Enoch Godongwana has revealed a reduction in the fuel levy of R1.50 per litre on petrol and R3 on diesel, effective from 4 November to 1 December.
Following this period, the cuts will decrease to R1 and R1.50 respectively, continuing until 5 January 2027.
This announcement was made during his Medium-Term Budget Policy Statement (MTBPS) on Wednesday, 21 October 2026.
Reactions from political parties
Responses to the news have ranged from relief to outright disapproval.
The GOOD Party characterized the fuel relief as “welcome, yet insufficient and too brief.”
“The geopolitical pressures affecting oil prices will persist beyond January, which will continue to drive up the costs of food, goods, and public transportation. Nine weeks of limited relief will not effectively address our ongoing cost-of-living crisis,” commented GOOD Secretary General, Brett Herron.
The GOOD Party also criticized Minister Godongwana for failing to mention the proposed Social Relief of Distress (SRD) grant.
While applauding various key allocations and policy measures, RISE Mzansi emphasized that temporary solutions are inadequate to tackle South Africa’s cost-of-living crisis and underlying economic issues.
The Democratic Alliance (DA) refrained from specifically commenting on the fuel levy cuts but expressed its commitment to reforms aimed at reducing government debt.
Labor and union responses
The Motor Industry Staff Association (MISA) expressed approval of the fuel levy relief, calling it a vital victory for workers, their families, and organized labor.
“Our members have reported being forced to choose between commuting to work and providing food for their families,” stated Martlé Keyter, Chief Executive Officer: Operations at MISA.
In response to the fuel levy cuts, the General Industries Workers Union of South Africa (GIWUSA) remarked: “This is merely a drop in the ocean.”
GIWUSA criticized Finance Minister Godongwana for lacking proposals for mandatory price controls on essential food items, nationalizing the fuel and food sectors, or legally enforcing a mechanism to regulate taxi fares.
AfriForum expressed support for the temporary reduction in fuel levies while underscoring that this reduction must be coupled with more profound reforms regarding the government’s management of tax revenue.
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