South Africa Announces R10bn Fuel Tax Cuts Amid Record Prices

South Africa has announced fresh fuel tax cuts worth 10 billion rand to ease the burden of record-high petrol and diesel prices on motorists and commuters. Finance Minister Enoch Godongwana announced the measures during his mid-year budget speech, as global energy market uncertainty continues to drive up fuel costs. Under the plan, the general fuel levy will be reduced by three rand per litre of diesel and one-rand-50 cents per litre of petrol. The relief will take effect on November 4 and run until December 1, with a smaller reduction expected to continue into the new year. The government says the measure will cost approximately 10 billion rand, equivalent to 611 million US dollars, in lost revenue. The shortfall will be offset by the return of funds previously transferred to the state-owned Central Energy Fund. South Africa, which imports most of its fuel, has been hit by price fluctuations and supply disruptions linked to the US-Israeli war on Iran and restrictions affecting the strategic Strait of Hormuz. In October, petrol prices rose above 30 rand per litre, while diesel prices also exceeded that level, increasing pressure on households and businesses.