Don’t get your hopes up for renewed fuel tax relief as motorists face record prices in October

More government intervention is looking unlikely as South African fuel prices look set to reach record levels in October.

South Africans are facing record petrol prices from the beginning of October, with diesel also set to edge close to its all-time highs, but don’t expect any more government relief.

Responding to a parliamentary question this week, Finance Minister Enoch Godongwana said that cushioning the blow for consumers would not be an easy task from a fiscal perspective.

“Permanently offsetting these increases through the budget would ultimately shift the cost to taxpayers or increase government borrowing,” the minister said.

“Fiscal policy therefore involves trade-offs: providing additional relief to consumers must be weighed against the impact on other spending priorities, taxation and government borrowing.”