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Finance Minister announces fuel tax intervention but prices still going up in April

Fuel price fuel pump petrol price petrol pump Credit Newspress

Fuel price fuel pump petrol price petrol pump Credit Newspress

Published Mar 31, 2022

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Johannesburg - South Africans have been given a temporary fuel tax reprieve, but it’s not going to lead to any price reductions in April.

Finance Minister Enoch Godongwana announced on Thursday that the general fuel levy would be temporarily reduced by R1.50 per litre from 6 April until 31 May. The levy currently accounts for at R3.85 per litre.

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However, thanks to the high international oil prices in March, South Africa’s petrol and diesel prices are still looking set to rise in April, albeit by a smaller margin.

Although April’s official fuel prices have not been announced as yet, unaudited late-month data supplied by the Central Energy Fund points to increases in the region of R1.80 for 95 Unleaded petrol, R1.72 for 93 Unleaded and R3.00 for 500ppm diesel.

Factoring in the temporary fuel levy decrease, motorists can expect increases of between 20 and 30 cents for petrol and a rise in the region of R1.50 for diesel. This would push the price of 95 Unleaded petrol up to around R21.18 at the coast and R21.90 inland, where 93 ULP will cost around R21.57.

Petrol (95) has increased by R5.26 at the coast and R5.28 inland in the space of just one year, while the wholesale price of 50ppm diesel has gone up by R5.38 at the coast and R5.37 inland.

The Finance Minister also announced various permanent adjustments to the fuel price calculation, effective from June. These include a price cap on 93 Unleaded petrol as well as other interventions which will be announced in more detail in due course.

Stay tuned to IOL Motoring for the official April fuel price announcement early next week.

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