Temporary General Fuel Levy Relief Announced in MTBPS

Posted 21 October 2026 Written by Acts Online
Category Tax & Customs

Brought to you by SAnews: The Minister of Finance has announced a temporary reduction in the general fuel levy administered under the Customs and Excise Act, No. 91 of 1964, delivering phased fiscal relief on petrol and diesel prices between November 2026 and January 2027.

Delivering the Medium Term Budget Policy Statement (MTBPS) in Parliament, the Minister outlined a two-stage reduction to alleviate domestic cost pressures resulting from elevated Brent crude oil pricing:

  • Phase 1 (4 November 2026 to 1 December 2026): Diesel fuel levy reduced by R3.00 per litre; petrol fuel levy reduced by R1.50 per litre.
  • Phase 2 (2 December 2026 to 5 January 2027): Diesel fuel levy reduced by R1.50 per litre; petrol fuel levy reduced by R1.00 per litre.

The intervention is projected to result in R10 billion in foregone revenue. The cost will be accommodated by reallocating R10 billion previously transferred to the Central Energy Fund (CEF) from 2025/26 revenue overruns back into the National Revenue Fund via an appropriation bill.

What this means for you, your business, or your clients

  • For yourself: Lower direct retail pump costs for personal vehicle fuel between 4 November 2026 and 5 January 2027.
  • For your business: Fleets and logistics operations will see reduced operating costs, requiring procurement and finance teams to update internal fuel price models and customer fuel surcharges across both relief intervals.
  • For your clients: Primary producers and transport businesses claiming diesel refunds under Schedule No. 6 of the Customs and Excise Act, No. 91 of 1964 must verify that accounting software applies the reduced base rates to prevent erroneous rebate claims submitted to SARS.

Originally published at https://www.sanews.gov.za/south-africa/finance-minister-announces-fuel-levy-relief

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