Economist Dr Azar Jammine has described the government’s temporary fuel levy relief as a “token gesture”, saying the measures offer some relief to consumers but are unlikely to have a significant impact.
Finance Minister Enoch Godongwana tabled the Mid-Term Budget Policy Statement in Parliament on Wednesday, announcing temporary fuel levy reductions of R1.50 per litre for petrol and R3 for diesel from 4 November to 1 December 2026.
Speaking to VOC News, Jammine said the relief appeared to be a response to growing calls for government to help consumers cope with rising fuel costs.
“I think it was just a display of willingness on the part of government to admit that it is listening to the people and it’s trying to help them a little. It’s a token gesture in that regard,” he said.
He added that the relief would cost about R10 billion, describing the amount as relatively small in the broader economic context.
On infrastructure investment, Jammine said government plans could support fixed capital formation growth of around 3% to 4% annually over the next few years. However, he cautioned that similar promises in the past had not translated into faster economic growth.
“We’re going to have to wait to see what’s going to be different this time, whether or not the government will be able to implement all the new processes that it says it’s going to do in order to ensure greater implementation,” he said.
Jammine also noted that fiscal discipline under the Government of National Unity had helped strengthen investor confidence, contributing to a stronger rand, lower long-term interest rates and credit rating upgrades. He said maintaining this confidence would be important as South Africa navigates ongoing economic challenges.
Photo: VOCfm
