November fuel price outlook: Here’s what you’re likely to pay for petrol and diesel from Wednesday

South African drivers are set to benefit from temporary tax cuts beginning November 4, reducing the cost of petrol and diesel at the pumps. According to Central Energy Fund data, petrol prices could drop by an average of 42 cents per litre, while diesel may see a reduction of around R1.58 per 500ppm and R1.68 per 50ppm. These changes, announced by Finance Minister Enoch Godongwana, will last until December 1 before decreasing to R1.00 and R1.50 per litre, respectively, between December 2 and January 5, 2027.

However, the final price adjustments will depend on other factors, including the Slate Levy, which will be released by the Department of Mineral and Petroleum Resources soon. If these predictions hold, a litre of 95 Unleaded at the coast could cost around R28.96, while inland it would be about R29.83, with 93 Unleaded priced around R29.46 inland.

Diesel prices are expected to dip to R29.50 at the coast and R30.37 inland for 500ppm, and R30.25 and R31.12 for 50ppm, respectively. The relief measures come as international oil prices soared in October due to Middle Eastern conflicts and concerns over global oil supplies. This November's break in fuel price hikes follows significant increases of up to R3.33 per litre for petrol and R3.24 for diesel earlier in the year.

The government aims to eventually phase out the General Fuel Levy, but revenue from it amounts to roughly R80 billion annually, making such a move challenging. The Finance Minister also called for a reconsideration of Road Accident Fund funding and a review of the fuel price structure, which is expected to conclude by March 2027.

However, motorists should not anticipate permanent tax cuts, as economists warn that reducing fuel taxes could harm public finances, weaken the rand, or require spending cuts in other areas.