Godongwana says Treasury cannot recover fuel relief money
Finance Minister Enoch Godongwana told parliamentary finance committees on the adjustment budget that Treasury has no way to recoup the more than R30 billion it is offering in fuel price relief. Treasury says the earlier levy freeze cost more than first estimated.
Asked how Treasury will plug the hole in the fiscus with another fuel price reduction on the way, Godongwana said: "We don’t have an instrument to recover whatever money we forfeited." He also said Treasury had lost money in the last six months but managed through prayer.
National Treasury said the fuel levy freeze from April to June cost about R23 billion. The first estimate was R17 billion. It said R10 billion allocated to the Central Energy Fund will offset the revenue loss.
Fuel prices are due to fall by R1.50 per litre next month, and by R1.00 per litre between December and January. Diesel is due to drop by R3 per litre next month and by R1.50 per litre the month after.
Some opposition parties call the ANC fuel levy reduction an election ploy.
Key facts
- Who
- Enoch Godongwana (Finance Minister); David Masondo (Deputy Minister (of Finance, per context)); National Treasury (government department presenting the fuel levy costs); Central Energy Fund (recipient of R10 billion allocation to offset revenue loss)
- What
- Godongwana said Treasury has no way to recoup the fuel price relief money, saying "we pray" was how lost money was managed. National Treasury said the April to June fuel levy freeze cost about R23 billion, above the initial R17 billion estimate, and that R10 billion allocated to the Central Energy Fund will offset the revenue loss.
- When
- 23 October 2026
- Where
- South Africa
- Status
- Reported