Godongwana expected to announce if temporary fuel levy will be extended

Minister of Finance Enoch Godongwana is this week expected to announce whether the temporary fuel levy cut will be extended.

Pressure is mounting on the minister to keep the relief in place, as motorists continue to feel the impact of sharply rising fuel prices.

In March, government reduced the general fuel levy by R3 a litre to cushion consumers against soaring global oil prices, driven by ongoing conflict in the Middle East.

While fuel prices still increased, the intervention helped limit the size of the hikes compared to earlier projections.

ALSO READ: Democratic Alliance urges for fuel levy relief to continue for another month.

While the temporary reprieve was widely welcomed, it came at a cost, stripping an estimated R6 billion from State revenue.

Government said it is exploring every option to soften the knock-on effects on consumers and key sectors of the economy.

However, it acknowledges that its ability to sustain relief is limited, warning that prolonged support could place severe strain on the tax system.

Officials said they are closely monitoring rising tensions in the Middle East and the impact on global oil markets, which could drive further fuel price increases locally.

New fuel prices for May are expected to be announced before next Wednesday, with the current relief measures set to expire on 5 May.

There is cautious optimism from industry players and economists that government may extend the relief for at least another month.