Finance Minister Enoch Godongwana has proposed that the general fuel levy be temporarily reduced by R1.50 per litre amid record petrol and diesel prices.
The reduction will be from 6 April to 31 May 2022.
Godongwana was speaking before Parliament on Thursday afternoon about a temporary reduction in the fuel levy.
The reduction is seen as an attempt to cushion rocketing prices.
Godongwana says, “The intention of the temporary reduction of the general fuel levy is to support a phasing in the fuel price increases that we are expecting in the short term. This will go some way in assisting South Africans to adjust to the new reality.”
The levy for petrol will reduce from R3.85 per litre to R2.35c per litre.
The levy on diesel will be reduce from R3.70c per litre to R2.20c per litre.
Concerns about rapid rises in fuel prices
Since Russia’s invasion of Ukraine, the oil price jumped to well above $100 a barrel.
This has escalated concerns about the effect of high fuel prices on the cost of other necessities like food.
The South African Petroleum Industry Association since warned that ongoing rapid petrol price increases will have a huge negative impact on the distribution of essential goods.
Meanwhile, the Council for Scientific and Industrial Research (CSIR) earlier this month warned that reducing fuel consumption must be done in a balanced way to avoid unintended consequences to sectors like agriculture and mining.
The CSIR, the Department of Mineral Resources and Energy and the Central Energy Fund all briefed Parliament on the impact of the increasing fuel prices on the economy.
More details of that briefing in the report below:
