Godongwana extends fuel levy

Finance Minister Enoch Godongwana has announced an extension of the R3 per litre reduction in the fuel levy for petrol, which will now remain in effect until June.

In a more significant move for the transport and industrial sectors, the minister also confirmed a R3.93 per litre relief for diesel, effectively reducing the diesel levy to zero.

The intervention comes as motorists face a staggering spike in fuel costs. According to the latest figures from the Central Energy Fund (CEF), fuel prices are expected to rise sharply on the first Wednesday of May:

Diesel: Projected increase of R5.42 per litre.

95 Octane Petrol: Projected increase of more than R2 per litre.

In an official statement, Godongwana noted that the temporary relief is a strategic measure aimed at taming the anticipated higher inflation triggered by surging global oil prices.

The energy market remains volatile, with oil prices spiking recently due to renewed geopolitical concerns regarding the ongoing conflict in the Middle East.

By absorbing a portion of these costs through levy reductions, the National Treasury hopes to shield consumers and the broader economy from the full impact of the price shocks.