A temporary R3/litre reduction in the diesel levy will give transporters breathing space even if other fuel price pressures limit the overall decrease, according to the Road Freight Association (RFA).
Finance Minister Enoch Godongwana announced the relief in his medium-term budget policy statement on October 21. The diesel levy will be reduced by R3/litre from November 4 to December 1, followed by a smaller reduction of R1.50/litre until January 5, 2027.
The petrol levy will be reduced by R1.50/litre during the first period and R1/litre thereafter. Godongwana said the measures will provide R10 billion support through foregone revenue.
RFA CEO Gavin Kelly described the decision as an important step for businesses struggling to meet their daily fuel expenses.
“It makes a difference, gives breathing space and hopefully we’ll be able to find more and more relief as we go along and as the price of fuel drops,” Kelly told Freight News.
He said the benefit should be assessed against what operators would otherwise have paid, regardless of fuel price increases or decreases when the relief is implemented.
Using a hypothetical R3/litre fuel-price increase as an example, Kelly said operators transporting goods or passengers will have found that additional money without the intervention.
“So, irrespective of what the price would have gone up by or even come down, this is real relief of three rand.”
The levy reduction does not, on its own, determine the overall change in fuel prices.
AgriSA also welcomed the announcement, highlighting the importance of diesel across agricultural operations and the food supply chain.
“It is an important intervention to ease pressure on agricultural production costs and food prices,” said AgriSA CEO Johann Kotzé.
The organisation said the relief comes at a critical time ahead of summer grain planting and fruit production with producers under pressure from high fuel and fertiliser costs.
However, AgriSA called for infrastructure investment beyond disaster recovery, saying reliable roads, water systems and logistics networks are essential to reducing production costs and expanding agricultural exports.
COSATU welcomed the temporary relief, saying it expects the intervention to ease pressure on commuters, support economic activity and reduce inflation. The federation also hopes the measure will help avert a November interest rate increase.
COSATU called for broader reform alongside the temporary intervention.
“An overhaul of the fuel taxes and levy is needed, including fixing the Road Accident Fund,” COSATU said.
