BusinessLive reports that the war in Ukraine continues to keep the international price of oil bouncing between $110 and $120 per barrel, and for most of June this price has remained closer to $120, which is about 7% up on May.

Also, the rand was weaker to the dollar for most of June, giving rise to under-recovery in the price of petrol. A fuel levy reprieve of R1.50 per litre has been in place for April, May and June. If minister of finance Enoch Godongwana reduces this to a reprieve of 75c per litre from 6 July to 2 August, as planned, motorists can expect a petrol price increase of about R2.50 in July, thereby increasing the price of 95 octane inland from R24.17 per litre to about R26.70. The Organisation Undoing Tax Abuse (Outa) pointed out that the fuel levy was one of the tax elements the government was able to adjust at short notice to assist consumers. It said: “We believe the minister should not reduce the fuel levy reprieve to 75c in July, but should wait until the geopolitical factors, combined with an improvement in the rand exchange rate, are able to bring about a significant reduction in the price of petrol.” In the view of the organisation, while petrol prices remain above R22 per litre, the minister would be wise to retain the full R1.50 reduction. Outa also indicated: “We also believe the government must find a solution to the runaway costs of the Road Accident Fund (funded by another fuel levy of R2.18 per litre), which requires urgent professional intervention. This levy should either be reduced, or not tied to the price of petrol.”

• Read the full original of the report in the above regard at BusinessLive

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