Start your engines! Fuel levy cut for two months
Finance minister to sell part of SA’s strategic oil reserves to fill the resultant gap in government revenue
SA will reduce its general fuel levy for two months and sell part of its strategic oil reserves to mitigate against the impact of rising crude prices stemming from Russia’s invasion of Ukraine.
The duty imposed on each litre of fuel will be reduced by almost 40% from April 6 until May 31, finance minister Enoch Godongwana told parliament on Thursday. The measure means the retail prices of 95-octane petrol and the wholesale cost of diesel will rise by less than Central Energy Fund data suggest they should.
“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,” Godongwana said. “This will go some way in assisting South Africans to adjust to the new reality.”..