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The Minister of Finance, Mr Enoch Godongwana, has today tabled a temporary reduction of the fuel levy to assist in smoothing the recent increase in fuel prices for households and businesses.
 
In his letter to the National Assembly (NA) Speaker, Ms Nosiviwe Mapisa-Nqakula, the Finance Minister said he was doing this to help South Africans “as they may need to adjust to an environment with higher fuel prices due to global conditions.”
 
The ongoing Russia-Ukraine conflict has resulted in a sharp rise in oil and gas costs as well as the depreciation of the exchange rate, amid fears of a global economic shock.
 
Unless an intervention was made, the expectation was that the regulated petrol price will go up by close to R4 per litre on 1 June 2022, which would increase the cost of 95 octane unleaded petrol by over R25 per litre. This entails an increase of just under 20 per cent for the coming month, according to the Minister.
 
In his letter, Mr Godongwana outlined the following proposal - which he said will be included in the 2022 Rates and Monetary Amounts and Amendment of Revenue Laws Bill - for consideration by the NA:
• A one-month extension of the temporary reduction of the general fuel levy by R1.50 per litre from 1 June 2022 to 5 July 2022.
• A phasing out of the relief through a one-month temporary reduction of the general fuel levy by 75c per litre from 6 July 2022 to 2 August 2022. The temporary relief will be withdrawn from 3 August 2022 onwards.
 
The Minister’s latest relief measures follow those he tabled on 31 March 2022 before the National Assembly, which included a two-month reduction in the general fuel levy of R1.50 per litre from 6 April 2022, reducing the levy by 40 per cent, at a fiscal cost of around R6 billion.
 
The recently tabled proposal will be published in the official papers of Parliament, the Announcements Tabling and Committees (ATC).

Issued by Parliament