JUST IN: Government to extend fuel levy for another two months
According to the department, 93 octane petrol will increase by R2.43 per litre and 95 octane petrol will increase by R2.33 on June 1.
POLOKWANE – Motorists can breathe a slight sigh of relief as government has extended the reduction in the fuel levy by another two months.
A joint statement released by National Treasury and the Department of Mineral Resources and Energy (DRME) states that this will take the form of a continuation of the relief of R1.50 per litre for the first month, from June 1 to July 6 and then a downward adjustment to the relief for the second month to 75c per litre from July 7 to August 2. The temporary relief will be withdrawn from August 3.
Government said the continuation of the Russia/Ukraine conflict, supply chain bottle-necks and a tightening of global monetary policy have led to further unfavourable changes in the two key drivers of the regulated petrol price, the exchange rate and the global oil price.
“These events have led to even larger increases in fuel prices compared to a few months ago when the temporary fuel levy relief was introduced.”
Government said the temporary reduction in the general fuel levy will only smoothen the impact of persistently higher fuel prices on consumers and businesses as the economy will need to adjust to this new reality.
In addition to the extension, the DRME will remove the demand side management levy of 10c per litre that has been applied to inland 95 ULP from June 1 and have proposed that the basic fuel price also be decreased by 3c per litre in the coming months.
“Government intends to continue with consultations and proposals to remove the price cap on 93 ULP, which will partially deregulate the market and introduce more competition to lower pump prices.”
According to the DRME, 93 octane petrol will increase by R2.43 per litre and 95 octane petrol will increase by R2.33 on June 1.
The price of 0.05% sulphur diesel will increase by R1.10 per litre while 0.005% sulphur diesel will increase by R1.07 per litre.
“The Rand depreciated against the US Dollar during the period under review, on average, when compared to the previous period. The average Rand/US Dollar exchange rate for the period April 28 to May 26 was 15.95 compared to 14.90 during the previous period. This led to a higher contribution to the basic fuel prices on petrol, diesel and illuminating paraffin by 99.49 c/l, 104.69 c/l and 104.47 c/l respectively,” the department said in a media statement.
