South Africa is moving closer to a potential new fuel relief package, with Parliament considering legislation that would allocate R10 billion to help stabilise fuel costs and protect consumers from price volatility.
The Standing Committee on Appropriations has adopted its report on the Second Special Appropriation Bill, which proposes transferring the funds from the National Revenue Fund to the Department of Mineral and Petroleum Resources.
However, motorists should not interpret the committee’s decision as confirmation that petrol prices will fall immediately. The bill must still complete the legislative process, including debate and approval by the National Assembly and signature by the president, before any relief measures can take effect.
Finance Minister Enoch Godongwana tabled the bill on 31 July 2026. It was referred to the committee on 4 August for consideration and reporting to the National Assembly.
The proposed allocation comes amid sustained pressure on household budgets and businesses as fuel prices rise. The report states that since the end of February 2026, following US attacks on Iran, petrol 95 has recorded a net increase of R10 per litre, while diesel has risen by R15 per litre.
Motorists faced another substantial increase in October, with fuel prices rising by R3 per litre. Inland petrol prices subsequently exceeded R30 per litre for the first time, intensifying concerns about transport costs and the broader cost of living.
Previous fuel levy cuts came at a significant cost
The government has already used temporary tax relief to soften the impact of rising fuel prices.
In April, National Treasury reduced fuel levies by R3 per litre and later extended the measure into May. The relief subsequently ended, leaving motorists exposed to further price increases.
Godongwana said the earlier intervention resulted in R17.2 billion in lost tax revenue, which would need to be recovered from other sources. He has also made clear that additional relief would carry a comparable fiscal cost.
The proposed R10 billion allocation is notable because it matches the initial amount the finance minister had earmarked for the earlier relief measures.
It remains unclear, however, whether the new funding will be used to reinstate previous fuel levy cuts or support a different intervention. The bill establishes a proposed funding allocation, but the final policy design and the extent of any price reduction have yet to be confirmed in the supplied report.
This distinction matters for consumers: allocating public money to stabilise fuel costs does not automatically translate into a guaranteed reduction of a specific amount per litre.
Calls grow for relief before December
Select Committee chairperson Mmusi Maimane has called for the funding to be used to reduce motorists’ expenses before December.
The Congress of South African Trade Unions (Cosatu) has also urged Parliament to pass the bill urgently, arguing that government intervention is needed as fuel becomes increasingly unaffordable.
Cosatu specifically called on National Treasury and the Central Energy Fund to use the R10 billion to provide fuel levy relief during October and November.
The calls reflect growing concern about the effect of high fuel prices on households, commuters and businesses that rely on road transport. Fuel costs can also affect the movement of goods and contribute to pressure on operating expenses across the economy.
Nevertheless, the timing and scale of any relief will depend on the bill’s passage and the government’s subsequent decisions on how the money should be spent.
The committee has stressed that the allocation must achieve its intended purpose. It also wants detailed expenditure reports to ensure that the use of public funds can be monitored.
Parliament seeks clearer plans for future price shocks
Beyond the immediate relief proposal, the committee has recommended that National Treasury and the Department of Mineral and Petroleum Resources jointly report to Parliament on potential future fuel price shocks.
The report should explain the circumstances under which basic fuel price relief and levy measures could be introduced. Such reporting could help clarify how the government intends to respond when international developments place renewed pressure on domestic fuel prices.
For motorists, the immediate question remains whether the R10 billion allocation will translate into lower costs at the pump and how quickly any intervention could take effect.
The bill still needs to be debated and passed by the National Assembly before being signed into law. Until the legislative process is completed and specific relief measures are announced, no particular reduction in petrol or diesel prices can be guaranteed.