Taxi passengers may feel some relief as the South African National Taxi Council (SANTACO) announced that there will be no immediate increase in fuel-related fares following the Finance Minister Enoka Godongwana's announcement of a temporary reduction in the fuel levy.
The council stated that fare increases will not occur while the industry continues to engage with the government to find more sustainable long-term support measures.
This statement came after Godongwana presented South Africa's Medium-Term Budget Policy in Parliament on Wednesday afternoon.
Fuel levy reduction will be implemented in two phases
Godongwana noted that the government is aware of the pressure rising fuel prices are putting on households and businesses. To provide temporary relief, the fuel levy will be reduced by 3 rand per litre of diesel and by 1.50 rand per litre of petrol from November 4, 2026, to December 1, 2026.
He specified that the reduction will continue at a lower rate until January 5, 2027, with the diesel levy decreasing by 1.50 rand per litre, and the petrol levy by 1 rand per litre.
According to Godongwana, these measures will provide support worth 10 billion rand, with fiscal costs amounting to 10 billion rand in lost revenue. He added that this 10 billion rand, transferred to the Central Energy Fund, will be returned to the National Income Fund and placed in the Contingency Reserve to finance this assistance.
'This intervention will help ease the pressure on the cost of living without jeopardizing budget sustainability,' he stated.
SANTACO calls for long-term solutions
SANTACO's national representative, Rebecca Fala, welcomed the intervention as a step towards reducing the financial burden on the transport sector and passengers. She emphasized that the taxi industry is particularly vulnerable to rising fuel prices, given the significant role fuel plays in daily operational costs and providing affordable public transport to millions of passengers.
Fala reiterated that there will be no immediate increase in fuel-related fares. She noted that SANTACO recognizes the importance of protecting passengers from additional financial strain while ensuring that operators can continue to provide reliable and affordable public transport services.
However, she warned that temporary aid is insufficient to solve the structural problems of the industry. While the Council appreciates the temporary assistance announced by the government, it insists that short-term measures alone cannot provide a long-term solution to the structural issues facing the taxi industry.
Fala pointed out that the planned end of aid on January 5, 2027, underscores the need for further engagement on measures to protect operators and passengers from fuel price volatility. She reported that SANTACO will continue to work with government departments and stakeholders to explore measures aimed at ensuring the long-term sustainability of the industry.
Fala stressed that a viable taxi industry is essential for public transport, economic activity, and the livelihoods of millions of people who rely on taxi minivans for access to work, education, healthcare, and other vital services.
SANTACO President Motlabane Abnar Tsebe urged industry bodies to communicate responsibly with operators and passengers as negotiations continue. Tsebe stated that SANTACO remains committed to constructive dialogue with the government in search of practical, sustainable solutions that protect the interests of both taxi drivers and travelers.
SAPRA welcomes aid ahead of holiday season
The South African Petroleum Retailers Association (SAPRA) also endorsed the temporary reduction in the fuel levy, noting that it is timely support for motorists, households, and businesses before the start of the festive season. SAPRA observed that this timing is particularly opportune as families prepare for holiday travel and businesses plan a busy year-end period. Against the backdrop of elevated global oil prices linked to the Middle East conflict, the government intervention will help alleviate the burden on household and business budgets.
The association stated that the reduction in fuel costs could positively impact the broader economy by easing transport expenses and supporting businesses during a period of increased travel and spending. It explained that this helps people get to work and visit loved ones, ensures products are on shelves, and fuels farms, factories, and small businesses. Thus, the fuel price reduction can bring wider economic benefits, especially during periods of increased travel and expenditure.
The association advised motorists that they will have more disposable income during the benefit period but strongly urged consumers to plan changes. They reminded that since the benefits cease on December 1 and end on January 5, consumers should take these dates into account when planning trips and expenditures. Henry van der Merwe, SAPRA's national president, said: 'SAPRA welcomes this assistance for consumers across South Africa, especially as the festive season approaches.'
MISA considers aid a victory for workers
The Mining Industry and Services Association (MISA) welcomed the announcement, calling it a victory for workers, their families, and organized labor. MISA argued that it proves that when workers speak through a strong and independent union, the government is compelled to listen. MISA stated that it was the first union to publicly demand a reduction in the fuel levy, as rising costs were putting pressure on working households. In September, MISA warned that transport and electricity costs were consuming an unsustainable portion of workers' incomes, preventing many families from covering basic living expenses. When petrol prices exceeded 30 rand per litre at the beginning of this month, MISA intensified its calls to the government for a significant reduction in the fuel levy.