Minister of Finance Enoch Godongwana announced a temporary reduction in the general fuel levy for two months.
A huge relief for South Africans as the finance minister announced an emergency intervention which will see the general fuel levy reduced by R1.50 per litre.
Godongwana made the statement before the National Assembly on Thursday and will see the levy price of petrol and diesel reduced by about a R1 a litre.
The announcement comes as the country faced another petrol increase next month.
Godongwana said the measures were taken by the government despite its constrained fiscal position to protect poor household.
He said the conflict in Ukraine has also intensified the risks for the country: “To mitigate the impact of these escalating fuel prices, I hereby table the following proposal which will be included in the 2022 Rates and Monetary Amounts and Amendments of Revenue Laws Bill for consideration by this house. A temporary reduction of the general fuel levy for R1.50 cents per litre for the period 16th of April to 31st of May 2022. This will reduce the levy for petrol from R3.85 cents per litre to R2.35 cents per litre.”
Godongwana said the country can make the intervention after the liquidation of a portion of crude oil reserves which will raise about R6 billion.
ACDP MP Steve Swart welcomed the move.
“Due to these increases as well as possible electricity increases, as well as interest rate increases, this announcement should be welcomed,” Swart said.
UDM MP Nqabayomzi Nkwankwa said that the reduction provided relief for the economy.
“The decision to temporarily reduce the general fuel levy by R1.50 is indeed welcome as it’s going to provide the South African motorists and the economy in general with much-needed relief at this very important period,” Nkwankwa said.