The Cape Chamber of Commerce and Industry (CCCI) this week said it welcomed government’s decision to drop the fuel levy. On Wednesday this week, delivering his Medium-Term Budget Policy Statement speech in the National Assembly, Finance Minister Enoch Godongwana announced the measure, a further drop expected in early 2027.
He said the fuel levy is to drop by R3/l for diesel and R1,50/l for petrol from 4 November to 1 December, and this relief would continue to 5 January 2027, when the diesel levy is expected to be R1,50/l less and petrol levy R1/l less.
Additional funds to provinces, metros
The Cape Chamber said it noted the upward adjustment in fuel-levy sharing with metros next year and the increase in the Local Government Equitable Share. The additional transfers should provide much-needed capital to the City of Cape Town and regional municipalities, helping fund local road maintenance, infrastructure expansion and municipal service efficiency without forcing aggressive tariff hikes on local businesses, said Andrew Donaldson, public-institutions business environment committee vice-chair.
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The additional funding allocated through the Provincial Equitable Share (PES) and Local Government Equitable Share (LGES) to provinces and municipalities announced in Godongwana’s speech was also welcomed by Western Cape Premier Alan Winde and Deidré Baartman, provincial Minister of Finance. Godongwana announced an additional R20,5 billion for the Provincial Equitable Share, while municipalities will receive an additional R21,8 billion through the Local Government Equitable Share.
Relief for transport industry
The Cape Chamber said it also welcomed the temporary R10 billion fuel-levy reduction that will ease operating pressure across transport-heavy supply chains and provide a welcome cash-flow respite for commercial fleets ahead of the peak festive period, said Donaldson, who previously served as a former National Treasury deputy director-general.
He said the temporary fuel relief comes as the Cape Chamber continues to highlight the compounding impact of volatile fuel prices and transport friction on local economic competitiveness.
Transport costs were a notable discussion point at a recent chamber Strategic Dialogue Network (SDN) earlier this year. The SDN platform brought together key corporate leaders, transport operators, and government stakeholders. Topics included potential digital traffic management, integrated public transport corridors, and accelerating road-to-rail freight migration.
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