The South African government has announced a temporary reduction in the general fuel levy from R4.10 per litre to R1.10 per litre, representing a cut of R3 and marking significant relief for motorists and other fuel consumers.
This was announced by the Central Energy Fund (CEF) on behalf of the Department of Mineral and Petroleum Resources.
The reduction, which will last until May 5, is the government’s attempt to shield motorists from a more severe fuel price increase due to the ongoing US-Israel and Iran war.
The measure is expected to cost the government around R6 billion.
Many South Africans have welcomed the latest development, including the Automobile Association (AA).
Reacting to the issue, Chief Executive Officer Bobby Ramagwede told SABC News, saying: “As the AA, we will continue to lobby for the relief to be extended. One has got to take into consideration that the government’s biggest problem is not revenue collection but rather expenditure management.”
Ramagwede added: “R6 billion a month is a figure that could easily be absorbed within the fiscus, so asking for that to be in the form of relief to consumers and the broader economy at large is a relatively small request.”
Although the department has announced an upward adjustment in both fuel grades, the reduction has helped lower the cost of fuel for South Africans.
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