BL Premium reports that with a temporary reduction of the general fuel levy set to end, the government says it is giving special attention to the fuel price, which is expected to rise sharply in June.
Finance Minister Enoch Godongwana and Mineral Resources & Energy Minister Gwede Mantashe announced a two-month reprieve of R1.50/l on the fuel levy at the end of March and said there would be other price-reducing measures from the beginning of June. The respite on the levy terminates at the end of May, but no announcements on other measures have yet been made. Together with the full general fuel levy, the price of 95 octane unleaded petrol is poised to rise to an unprecedented R25.72/l from R21.84/l on 1 June, which would have a serious effect on inflation, particularly for the transport and agriculture sectors. Mantashe indicated last week that the temporary R1.50 relief was unlikely to be extended because the proceeds from the sale of strategic oil reserves were enough to ensure a reduced levy for only two months. When they announced the two-month reprieve on the payment of the general fuel levy, Mantashe and Godongwana had said that a “broader package of relief measures” would be explored and they would come into effect after the expiry of the two-month fuel levy reduction. Minister in the Presidency, Mondli Gungubele, indicated on Thursday that the government would wait for Mantashe and Godongwana to give feedback. “But it’s a matter that is receiving special attention ... because it affects our economy very strongly,” he added. Meantime, the speaker of the National Assembly, Nosiviwe Mapisa-Nqakula, has agreed to a Democratic Alliance (DA) request for a debate in the house on fuel price hikes,
- Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only)
- Read too, Government mulls extending fuel levy intervention as major fuel hikes loom – Gungubele, at Fin24
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