GOOD Statement by Brett Herron,
GOOD Secretary General & City of Cape Town Mayoral Candidate
20 October 2026
If Minister of Finance Enoch Godongwana announces fuel price relief in his Medium-Term Budget Policy Statement tomorrow, he will mitigate the impact of the global fuel crisis on struggling South African consumers, keep inflation in check, and reduce pressure on the country’s interest rates.
Besides announcing immediate-term relief, the Minister should use the opportunity to announce a systemic review of the General Fuel Levy which in its present guise is not fit for any particular purpose and functions as a general tax.
The geopolitical turbulence that has driven global fuel prices upwards shows no signs of abating. Whereas consumers in the global north arguably have the resources to absorb the financial pain, South Africa’s fragile economy affords consumers precious little wriggle-room.
All South Africans, not just those who drive their own cars, are directly impacted by fuel prices, be it through paying more for food and consumer goods, or public transport.
On the very bottom rungs of South Africa’s economy are the 8-9 million unemployed adults who receive the R370 a month SRD Grant. The quantum of the grant is disgraceful in the context that State sets the lower bound poverty line at R1457 per month.
At the same time as announcing fuel relief, the Minister must stop kicking the SRD can down the road. Nobody can afford to live on less than R13 a day.
The National Development Plan sets a concrete target to reduce the number of households living below the Lower-Bound Poverty Line to 0% by 2030.
In a tepid economy, the only way that the State will be able to fund its obligations is by adopting a new approach to its budgetary strategy. Zero-based budgeting is an approach where every expense and allocation must be justified from a “zero base” for each new period, rather than carrying over or incrementally increasing past budgets.
It is an approach which eliminates unnecessary expenditure and wastage.
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