Fuel levy relief in the spotlight as pressure mounts on Godongwana ahead of mini-budget

With some petrol grades climbing to over R30 a litre and household budgets under pressure, Finance Minister, Enoch Godongwana, is facing calls for a fuel levy relief when he tables the Medium-Term Budget Policy Statement (MTBPS) on Wednesday.

The mid-term budget comes as rising fuel prices add to the financial strain on households and businesses, with calls growing for Treasury to consider relief for motorists while balancing its spending priorities.

Rise Mzansi leader, Songezo Zibi, says the current global economic climate demands an overhaul of the fuel levy structure. He argued that a system designed to generate consistent revenue leaves government with limited flexibility to provide urgent relief to consumers.

In a statement released on Tuesday, Zibi said that while a tax windfall of more than R54 billion is anticipated, it will be allocated to “special rather than permanent programs, such as infrastructure”. 

Zibi warned that global volatility could persist for at least another two years, putting further pressure on household incomes, increasing indebtedness and potentially fuelling social and political instability.

He has called on Treasury to clarify how it plans to protect South African exporters against the risk of losing access to the African Growth and Opportunity Act (AGOA), whether motorists and businesses can expect direct fuel levy relief, and how it intends to fund critical economic infrastructure and national immigration management.

The ‘mini-budget’ also comes amid global uncertainty, including volatile oil supplies and the threat of losing preferential access to the United States market under the African Growth and Opportunity Act (AGOA)

ActionSA has also placed immediate fuel levy relief at the centre of its expectations, while calling for stronger action against the illicit economy.

The party argues that government could provide relief without undermining its fiscal objectives, pointing to SARS’ strong revenue collections.

ActionSA further argues that illegal trade undermines legitimate businesses and deprives the state of tax revenue, estimating that the illicit economy accounts for 15% of South Africa’s gross domestic product.

“The Minister must announce a three-year moratorium on above-inflation increases in excise duties on these products to provide legitimate businesses with greater certainty, protect jobs and help curb the growth of the dangerous illicit market,” said the party’s Communications Director, Mathew George. 

The party has warned that its support for the adjustment budget will depend on whether government delivers cost-of-living relief and takes decisive action against the illicit economy. 

Meanwhile, President Cyril Ramaphosa says government is seriously considering measures to ease the pressure on motorists following the latest fuel price increases.

Speaking on the sidelines of the Bana Pele Summit in Sandton on Monday, Ramaphosa acknowledged that previous interventions had come at the expense to other government programmes.

“We are giving serious consideration to what needs to be done. When the fuel prices rose a few months ago, the government intervened and poured in subsidies of about R24 billion. That is money that we are removing from other programmes. Now that it’s gone up again, everyone in the world is considering what they should do. So are we,” he said.

In April, government introduced temporary fuel levy relief, reducing the petrol levy by R3 a litre and providing nearly R4 a litre in relief for diesel as global oil prices continued to climb.

With fuel prices rising again, pressure is mounting on Treasury to consider similar intervention. 

On Wednesday, Godongwana will face pressure to demonstrate how Treasury plans to balance fiscal discipline with the immediate financial pressures facing households and businesses.

📹Members of the public share their messages with the Minister of Finance, Mr Enoch Godongwana, ahead of the 2026 MTBPS.

#MTBPS2026 #GovZAUpdates @GovernmentZA https://t.co/1l69NERSzS

— National Treasury RSA (@Treasury_RSA) October 20, 2026