S. Africa Introduces Temporary Fuel Levy Cut to Offset Rising Costs
Under the measure, the levy will be lowered by R3 ($0.16) per liter from April 1 through May 5. This adjustment brings petrol levies down to R1.10 ($0.06) per liter and diesel to R0.93 ($0.05) per liter.
Authorities described the decision as an effort to strike a balance between protecting households from increasing transportation and food expenses while preserving fiscal stability. The temporary measure is projected to result in approximately R6 billion ($320 million) in lost government revenue and will be reassessed after the one-month period.
The country remains highly dependent on imported crude oil and refined fuel products. Recent price spikes have seen diesel costs rise by as much as R7.51 ($0.44) per liter, while petrol has increased by R3.06 ($0.18), creating widespread economic pressure. Reports indicate that by Tuesday evening, some fuel stations in eastern Johannesburg had begun turning away customers after running out of both diesel and petrol.
Despite supply concerns, officials emphasized that there is “sufficient fuel supply in the country to meet current and projected demand,” urging the public to avoid panic buying and “unnecessary stockpiling.”
The policy comes against the backdrop of rising tensions in the Middle East following US and Israeli airstrikes on Iran that began on February 28, pushing global oil prices above $100 per barrel. According to reports, the country is experiencing “historically high fuel price increases from April.”
The move follows instructions from President Cyril Ramaphosa to address the surge in fuel costs. Minister Mantashe noted that the average price of Brent crude climbed from $69.08 to $93.67 amid the ongoing conflict between the US and Iran, which “has affected crude oil supply, especially through the Strait of Hormuz.”
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