JOHANNESBURG, May 1– South Africa on Tuesday announced an extension of temporary fuel levy relief measures to cushion households from rising fuel prices following the Middle East conflict.
The National Treasury and the Department of Mineral and Petroleum Resources said in a joint statement that a temporary reduction of 3 rand (about 18 U.S. cents) per liter in the general fuel levy for petrol, first announced on March 31, will be extended until June 2. The initial relief measure, which took effect on April 1 and was due to end on May 5, was introduced to provide limited short-term relief to households amid rising fuel prices, the statement said. The departments said the continued Middle East conflict has kept pressure on global oil prices, leading to increases in domestic fuel prices. Under the extension, the general fuel levy for petrol will remain at 1.1 rand per liter from May 6 to June 2, while the minister of finance has proposed increasing the temporary relief for diesel by 93 cents to 3.93 rand per liter over the same period, reducing the general fuel levy for diesel to zero, the statement said.
For June, the level of relief will be halved to phase out the measure before July. From July 1 onward, the general fuel levy will return to 4.1 rand per liter for petrol and 3.93 rand per liter for diesel, according to the statement. The departments said the temporary relief from April to June is estimated to cost 17.2 billion rand in foregone tax revenue, but the measure is designed to be revenue-neutral and will not affect the fiscal framework.
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