- Temporary fuel levy relief announced in MTBPS.
- Diesel levy down R3 per litre.
- Petrol levy down R1.50 per litre.
- First cuts run 4 November to 1 December 2026.
- Smaller reductions apply until 5 January 2027.
Motor dealers have backed the temporary fuel levy relief announced in the Medium-Term Budget Policy Statement, while warning that it must be matched by lasting gains in household affordability and business conditions. The National Automobile Dealers’ Association (NADA) also welcomed government’s commitment to fiscal stability, infrastructure investment and stronger municipal accountability.
Fuel levy relief dates and amounts
From 4 November to 1 December 2026, the diesel levy falls by R3 per litre and the petrol levy by R1.50 per litre. After that, reductions of R1.50 per litre for diesel and R1 per litre for petrol apply until 5 January 2027.
“The temporary levy reductions will provide some breathing space for motorists and businesses that depend on vehicles for their livelihoods,” said Brandon Cohen, Chairperson of NADA.
NADA on vehicle affordability and growth
Cohen pointed out that the cost of owning a car goes well beyond its purchase price, with buyers also covering finance repayments, fuel, insurance and maintenance. In his view, levy relief eases only one part of that burden, and sustained improvement requires stronger incomes, employment growth and lower everyday expenses.
Government’s growth forecast for 2026 has been revised down from 1.6% to 1.2%. According to the association, this strengthens the case for faster reforms that support investment and jobs, since a sustainable retail market depends on consumers and businesses having the confidence and means to buy vehicles.
Municipal services, infrastructure and policing
Reliable electricity and water, maintained roads and effective local services are fundamental to dealership operations, the body said. “Service disruptions and deteriorating infrastructure add costs and affect their ability to serve customers,” Cohen noted, adding that extra municipal funding and oversight must produce visible improvements.
Efforts to speed up infrastructure delivery, attract private investment and strengthen policing capacity were also welcomed. Completed projects can create demand for vehicles used in construction and deliveries, while crime adds to dealership operating costs and weighs on business confidence.
What NADA wants from the reforms
Cohen said the longer-term test is whether the measures strengthen household purchasing power, improve service delivery and allow dealerships to invest, develop skills and sustain employment. NADA is a constituent association of the Retail Motor Industry Organisation (RMI), and motorists will see the first levy cut at the pumps from 4 November 2026.
Supplied by MotorPress (Ilana Salant, Media Contact, Meropa Communications)
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