Economy: Here Is Why South Africa Is Extending Fuel Levy Cuts

The South African government is considering an extension on the reduction in the general fuel levy until early August to ease pressure on consumers from high domestic fuel prices linked to the Russia-Ukraine conflict.

In March, the government announced a temporary reduction in the fuel levy of 1.5 rands ($0.09) per litre for two months due to the high rise in fuel and food prices. The cut was due to expire at the end of May.

But a joint statement by the National Treasury and Department of Mineral Resources and Energy on Tuesday shared that the estimated cost of the two-month proposal in foregone revenue was 4.5 billion rands ($28 8.3m).

“The Minister of Finance has today submitted a letter to the Speaker of the National Assembly, requesting the tabling of a two-month proposal for the extension of the reduction in the general fuel levy,” the statement said.

The new proposal would allow the 1.5 rands a litre reduction to continue from June 1 to July 6, before being lowered to a 75 cents ($0.05) litre reduction from July 7 to August 2. Starting August 3, the relief would be withdrawn.

Patsy Nwogu

A writer focused on data journalism, health and data analytics.

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