Godongwana says plan is to remove petrol levies
Finance Minister Enoch Godongwana said phasing out the general fuel levy would cost about R80 billion in revenue. He spoke after the Mid-Term Budget and gave no timetable or detailed plan to replace the money.
Godongwana said government must phase out the general fuel levy and rethink how the Road Accident Fund is financed. The fund's levy on petrol is R2 per litre. He said removing only that levy would bring a major drop in the price of fuel.
He said refining capacity is important and South Africa should not rely on imports of refined products. He also said the spending problem is not about money but about capacity to spend and corruption.
Godongwana said about R8 billion of infrastructure spending is being rescheduled this year because departments could not absorb it. He said departments asked for R717 billion more over the Medium-Term Framework. He added that better credibility with markets is lowering the cost of borrowing.
He ended with a view on the country's direction: "Look, I'm quite convinced that we have steered the ship correctly".
Key facts
- Who
- Enoch Godongwana (Finance Minister); Trevor Manuel (former finance minister, mentioned in recollection of 1997 discussions)
- What
- Speaking to 702 after the Mid-Term Budget, Godongwana said government needs to phase out the general fuel levy and reconsider how the Road Accident Fund is financed, without announcing a timetable or detailed replacement plan.
- When
- 26 October 2026
- Where
- South Africa
- Status
- Reported