Ramaphosa points to fuel levy relief as cost-of-living crisis bites

President Cyril Ramaphosa says the government’s temporary fuel levy relief is part of broader efforts to ease cost-of-living pressures on households, and argues that South Africa’s improving public finances must ultimately lead to better services, jobs and economic growth.

Last week, Finance Minister Enoch Godongwana responded to South Africans’ call for relief by reducing the fuel levy.

In his weekly newsletter after last week’s MTBPS, Ramaphosa acknowledged the financial strain many South Africans face.

We know the rising cost of living is putting a massive strain on households. The temporary reduction in the fuel levy announced by the minister is one of the ways we are trying to provide some relief.

He said the government has maintained a primary budget surplus since 2023, allowing it to reduce borrowing costs and direct more resources to development priorities.

The president said more than R11 billion in savings had been identified by rationalising lower-priority programmes, and reforms are also underway to improve infrastructure delivery and oversight.

However, Ramaphosa cautioned that stronger public finances do not mean South Africa’s economic challenges have been resolved.

Fixing our finances isn’t just about collecting more revenue; it is about spending it better and dealing with poor services.

Ramaphosa said the government’s job now is to turn financial stability into economic opportunity and a “better quality of life for everyone”.