Cape Town - Finance Minister Enoch Godongwana and Mineral Resources and Energy Minister Gwede Mantashe have provided further relief to motorists for two more months. However, the price of fuel will still cost motorists between R1.07 and R2.43 more.
The ministers said they had ahead injected R4.5 billion for the next two months to stave off a spike in energy prices.
The National Treasury and the Department of Mineral Resources and Energy said yesterday that unlike in March when the government sold R6bn of strategic fuel stock to provide relief to motorists, the latest intervention would be funded through the fiscus.
This would result in R4.5bn that would be forgone in the Budget.
However, if there were any further changes required after August, this would be announced in the Medium Term Budget Policy Statement.
It had been projected that petrol was expected to go up as high as R4 a litre in June. This was eventually cushioned by the suspension of the general fuel levy for two more months.
- 93 Unleaded increases R2.43 per litre
- 95 Unleaded increases R2.33
- Diesel 0.05 sulphur increases R1.10
- Diesel 0.005 sulphur increases R1.07
Political parties had also called on government to act, as motorists were buckling under pressure.
The intervention came after Godongwana met with Mantashe over the matter.
National Treasury said the prices have continued to be influenced by the conflict in Ukraine.
Since the war started in Ukraine in February, global oil prices have soared over the last few months.
Godongwana has written to Speaker Nosiviwe Mapisa-Nqakula on the adjustment to the prices.
“Due to this significant monthly price increase, 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.
“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“The temporary relief will be withdrawn from August 3. The chair of the National Council of Provinces has also been informed of this proposal,” said the National Treasury and the Department of Mineral Resources and Energy.
“The revenue foregone from the extension of the relief is estimated at R4.5bn. Unlike the previous announcement, this proposal is expected to have an impact on this fiscal framework as it will not be fully funded through a sale of strategic oil stocks.
“Government remains committed to the fiscal framework outlined in the Budget 2022. The proposed temporary reduction in the fuel levy will be accommodated in the current fiscal framework in a manner that is consistent with the fiscal strategy outlined in the Budget. Any changes, if required will be announced at the time of the 2022 Medium Term Budget Policy Statement,” said the two departments.
Political Bureau