South Africa has announced temporary fuel tax cuts to relieve consumers struggling with record-high petrol and diesel prices driven by global energy disruptions.

Finance Minister Enoch Godongwana announced during his mid-term budget speech on Wednesday that the general fuel levy would be reduced by three rand ($0.18) per litre for diesel and 1.50 rand per litre for petrol.

The relief package, which takes effect from 4 November until 1 December before tapering into the new year, will cost the treasury 10 billion rand ($611 million) in foregone revenue.

Africa’s most industrialized economy imports the vast majority of its crude oil and has faced severe price shocks following the escalating US-Israeli conflict with Iran and subsequent supply bottlenecks around the Strait of Hormuz.

Squeeze on households

In October, domestic pump prices reached historic highs, with both petrol and diesel surpassing 30 rand per litre. The price spikes have heavily impacted public transport fares and low-income households reliant on paraffin for heating and cooking.

The government said the lost tax revenue would be offset by drawing down surplus funds from the state-owned Central Energy Fund.

“Despite global volatility, South Africa is weathering the storm much better than its peers because we have been able to consistently take hard decisions over the last five years that have built our fiscal buffers,” Mr. Godongwana told parliament.

Growth outlook trimmed

The interventions come as the Treasury lowered its economic growth projection for 2026 to 1.2 per cent, down from the 1.6 per cent forecast in February, citing global market headwinds.

However, stronger tax collections driven by elevated international commodity prices have helped stabilize public debt, which is projected to plateau at 78.4 per cent of GDP in the 2025/26 financial year—marking its first stabilization in nearly two decades.