S. Africa Cuts Fuel Levy to Ease Price Surge
From April 1 to May 5, the levy will drop by R3 ($0.16) per liter, bringing petrol levies down to R1.10 ($0.06) per liter and diesel to R0.93 ($0.05). Officials described the move as an effort to protect households from increasing transport and food expenses while maintaining fiscal responsibility. The one-month measure is expected to cost the government around R6 billion ($320 million) in revenue and will be reviewed at the end of the period.
South Africa’s dependence on imported crude oil and refined fuels has made the country vulnerable to price shocks. Diesel prices have jumped by as much as R7.51 ($0.44) per liter, while petrol has risen by R3.06 ($0.18), leading some stations in eastern Johannesburg to run out of fuel and turn away motorists by Tuesday evening.
Authorities stressed that there is “sufficient fuel supply in the country to meet current and projected demand” and urged citizens and businesses to refrain from panic buying or “unnecessary stockpiling.”
The price relief comes amid escalating conflict in the Middle East following US and Israeli airstrikes on Iran beginning February 28, which have pushed oil prices above $100 per barrel. According to reports, South Africa faces “historically high fuel price increases from April.”
President Cyril Ramaphosa had instructed officials to address the rising petrol and diesel costs. Minister Mantashe noted that the average Brent crude price rose from $69.08 to $93.67 due to the ongoing US-Iran conflict, which “has affected crude oil supply, especially through the Strait of Hormuz.”
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
