Petrol and Diesel cut prices from next week
Petrol and Diesel cut prices from next week as the government prepares to introduce a temporary reduction in the General Fuel Levy (GFL), offering motorists and businesses some relief from rising international oil prices.
The latest Central Energy Fund (CEF) data shows that petrol and diesel prices are facing significant upward pressure because of higher global oil prices and a weaker rand. However, the government’s decision to reduce the fuel levy is expected to offset these increases and result in lower pump prices during November 2026.
The temporary fuel tax cut will apply from 4 November until 1 December 2026. During this period, the General Fuel Levy will be reduced by R1.50 per litre for petrol and R3.00 per litre for diesel.
Without this intervention, motorists could have faced substantial increases in November. The latest fuel price projections indicate that the levy reduction will instead result in decreases across the main petrol and diesel categories.
Petrol and diesel prices face pressure from global oil markets
The latest CEF figures show that the Basic Fuel Price (BFP) is indicating under-recoveries for petrol and diesel towards the end of October.
An under-recovery means that the current regulated fuel price does not fully cover the cost of importing and supplying fuel under the prevailing international market conditions. It can therefore create pressure for an increase in the following month’s regulated prices.
According to the supplied figures, petrol is facing an under-recovery of between 63 cents and 80 cents per litre. Diesel is showing a larger under-recovery of between 82 cents and 94 cents per litre.
These figures reflect the combined impact of international petroleum prices and movements in the rand-dollar exchange rate.
Brent crude oil prices increase
One of the major factors affecting South African fuel prices is the cost of crude oil on international markets.
Brent crude reportedly increased from approximately $96 per barrel at the end of September to around $112 per barrel at the time of the supplied report.
Renewed tensions in the Middle East have contributed to uncertainty in global energy markets. Concerns about possible further military action involving Iran have also added pressure to oil prices.
US President Donald Trump has reportedly indicated that attacks on Iran could resume after the American midterm elections.
Developments in the Middle East matter to South Africa because the country relies on international markets for petroleum products and crude oil. When global prices rise, the cost of importing fuel can increase, placing additional pressure on local pump prices.
However, international oil prices are only one part of the calculation. The rand’s performance against the US dollar also influences the final cost of imported petroleum products.
Weaker rand adds pressure to November fuel prices
The exchange rate remains another important factor in determining South African petrol and diesel prices.
The rand reportedly weakened to approximately R16.64 against the US dollar in the latest figures provided.
Because petroleum products are traded internationally in US dollars, a weaker rand makes imports more expensive for South African buyers.
The latest calculations indicate that the exchange rate is contributing an under-recovery of approximately 36 cents per litre for petrol and 47 cents per litre for diesel.
This means that even if international oil prices remain unchanged, further rand weakness could increase the cost of importing refined petroleum products.
The combination of higher Brent crude prices and the weaker rand has therefore created considerable upward pressure on the November fuel price adjustment.
CEF November fuel price predictions before the levy reduction
The Central Energy Fund’s latest projections at the end of the fifth and final week of October show substantial potential increases before the government’s temporary fuel relief is taken into account.
The projected adjustments are:
| Fuel type | Projected change before relief |
|---|---|
| Petrol 93 | Increase of R1.17 per litre |
| Petrol 95 | Increase of R1.01 per litre |
| Diesel 0.05% (wholesale) | Increase of R1.42 per litre |
| Diesel 0.005% (wholesale) | Increase of R1.32 per litre |
These projections illustrate the pressure facing the fuel market.
Petrol 93 is showing a projected increase of R1.17 per litre, while petrol 95 is facing a potential increase of R1.01 per litre.
Diesel is under even greater pressure, with the 0.05% wholesale grade showing a projected increase of R1.42 per litre.
However, these figures do not reflect the final expected adjustments because they exclude the temporary General Fuel Levy reduction.
Government announces temporary General Fuel Levy reduction
The government has announced a temporary reduction in the General Fuel Levy to cushion households and businesses against rising fuel costs.
Between 4 November and 1 December 2026, the levy will be reduced by R1.50 per litre for petrol and R3.00 per litre for diesel.
Finance Minister Enoch Godongwana said the intervention was intended to provide relief amid rising international oil prices and the increasing cost of living.
“Geopolitical conflict has pushed up global oil prices and led to a sharp rise in the cost of living for businesses and households,” Godongwana said.
He added that the country’s improved fiscal position had created room for temporary support.
“Because we have rebuilt fiscal buffers, the government is in a stronger position to respond, including by providing temporary fuel relief levy again,” he said.
The reduction is intended to offset the pressure created by higher international fuel costs. It does not mean that the underlying cost of importing petroleum products has fallen.
How the fuel tax cut affects motorists
The General Fuel Levy is one of the taxes included in the regulated fuel price. Reducing it lowers the amount of tax charged per litre and can therefore reduce the final pump price.
The planned reduction is particularly significant for diesel because the levy relief is R3.00 per litre, compared with R1.50 per litre for petrol.
This difference helps explain why the projected November diesel prices show larger decreases than the petrol prices.
The intervention is temporary, meaning motorists should not assume that the lower levy will remain in place after 1 December 2026.
Expected petrol and diesel prices for November 2026
After the temporary fuel relief is included, the supplied projections show decreases across all four listed fuel categories.
The expected November prices are:
| Fuel type | October price | Projected change | Expected November price |
|---|---|---|---|
| Petrol 93 | R29.88 | -R0.33 | R29.55 |
| Petrol 95 | R30.25 | -R0.49 | R29.76 |
| Diesel 0.05% (wholesale) | R31.95 | -R1.58 | R30.37 |
| Diesel 0.005% (wholesale) | R33.29 | -R1.68 | R31.61 |
The figures suggest that petrol 93 could decrease by 33 cents per litre, while petrol 95 could fall by 49 cents.
Diesel users could receive greater relief. The 0.05% wholesale grade is projected to decrease by R1.58 per litre, while the 0.005% grade could fall by R1.68 per litre.
These figures are projections based on the supplied CEF data and the announced levy reduction. The final regulated prices will be confirmed through the official monthly fuel price adjustment announcement.
What lower fuel prices mean for households and businesses
The expected November decreases could provide some relief to South African households already dealing with higher living expenses.
For motorists, even a relatively small reduction per litre can make a difference when filling a vehicle’s tank regularly.
Businesses that rely on transport and logistics could also benefit from lower diesel costs. Delivery companies, agricultural operators, public transport providers and other diesel-dependent industries are particularly exposed to fuel price movements.
Fuel costs also influence the prices of goods and services because transportation is an important part of many supply chains.
However, the temporary levy reduction does not guarantee that all transport operators or retailers will immediately lower their prices. Other operating expenses and market conditions can also influence what consumers pay.
The duration of the relief is another important consideration. Once the temporary reduction expires, fuel prices will again reflect the applicable levy and the prevailing international and domestic cost factors.
When will the new fuel prices take effect?
The temporary General Fuel Levy reduction is scheduled to apply from 4 November until 1 December 2026.
Motorists should wait for the official November fuel price announcement before relying on the projected figures when planning their budgets.
The final adjustment will depend on the applicable pricing calculations and the government’s implementation of the temporary relief measure.
The CEF’s daily fuel price data provides an indication of whether the Basic Fuel Price is experiencing under-recovery or over-recovery. However, these daily figures are not the same as the final regulated pump prices.
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Conclusion: Petrol and Diesel cut prices from next week
Petrol and Diesel cut prices from next week as the government’s temporary General Fuel Levy reduction offsets pressure from higher international oil prices and a weaker rand.
The latest projections indicate that petrol 93 could decrease to R29.55 per litre and petrol 95 to R29.76. Diesel prices are also expected to fall, with the wholesale 0.05% grade projected at R30.37 and the 0.005% grade at R31.61.
The relief will apply from 4 November to 1 December 2026, with diesel receiving a larger levy reduction than petrol.
Although the intervention offers temporary support to motorists and businesses, global oil prices, geopolitical developments and the rand-dollar exchange rate will remain important factors influencing South Africa’s future fuel prices.
References from mainstream media
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BusinessTech: “Good news for petrol and diesel prices in November as government slashes fuel levy” – https://businesstech.co.za/news/energy/2026-10-29/good-news-for-petrol-and-diesel-prices-in-november-as-government-slashes-fuel-levy/
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News24 (Fin24): “Relief for motorists: Petrol and diesel prices to drop after Godongwana cuts fuel levy” – https://www.news24.com/fin24/economy/relief-for-motorists-petrol-and-diesel-prices-to-drop-after-godongwana-cuts-fuel-levy-20261029
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Moneyweb: “Fuel levy intervention saves motorists from massive November petrol price hike” – https://www.moneyweb.co.za/news/economy/fuel-levy-intervention-saves-motorists-from-massive-november-petrol-price-hike/
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IOL Business Report: “Petrol and diesel prices to fall next week as government steps in with tax relief” – https://www.iol.co.za/business-report/economy/petrol-and-diesel-prices-to-fall-next-week-as-government-steps-in-with-tax-relief-2026-10-29
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