The Department of Mineral Resources, along with the National Treasury, announced on Tuesday it proposed to extend the cut in the general fuel levy until August to ease pressure on motorists from high domestic fuel prices that is linked to the Russia-Ukraine conflict.
The National Treasury said the estimated cost of the two-month proposal in foregone revenue was R4.5 billion, adding that it was committed to the fiscal framework outlined in the 2022 budget.
In March, the government announced a temporary reduction in the fuel levy of R1.50 per litre for two months, but that was due to expire at the end of May.
The new proposal is for the R1.50 a litre reduction to continue from June 1 to July 6, before being lowered to 75 cents a litre reduction from July 7 to August 2.
From August 3, the relief would be withdrawn.
"The Minister of Finance has today submitted a letter to the Speaker of the National Assembly, requesting the tabling of a two-month proposal for the extension of the reduction in the general fuel levy," the Treasury said in a joint statement with the Department of Mineral Resources and Energy.
“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. As announced on 31 March 2022, Government will also take further measures to help reduce fuel prices in a more sustainable manner,” the government went on to say in their joint statement.
Treasury, along with the Department of Mineral Resources, said it would be announcing the actual fuel price adjustments later today.
BUSINESS REPORT ONLINE