South Africa extends fuel levy relief
As prices continue to increase
The petrol levy was cut by R1.50 a litre for April and May as government sought to relieve the economic stress of surging fuel prices.
The price of 95-octane unleaded petrol in South Africa rose by R2.33 a litre yesterday, while 93-octane unleaded petrol will go up by R2.43 a litre, the Department of Mineral Resources and Energy announced on Tuesday.
Diesel prices will rise by R1.10 (0.05% sulphur) per litre and R1.07 (0.005% sulphur) per litre respectively, while illuminating paraffin will be R1.56 more expensive per litre.
The maximum liquefied petroleum gas (LPG) retail price will fall by 51c per kilogram.
The fuel prices were pushed higher by oil, with the average Brent crude oil price increasing from US$104.78 a barrel to US$115.00 over the past month.
The increases are smaller than feared after Treasury decided to grant an extension of the reduction in the general fuel levy.
The petrol levy was cut by R1.50 a litre for April and May as government sought to relieve the economic stress of surging fuel prices. Around R6 billion of the state’s strategic oil reserves were sold to fund the levy cut. But the sale will not entirely fund the extension.
The R1.50 relief will be extended from 1 June until 6 July, followed by a downward adjustment to the relief for the second month - to 75c per litre from 7 July until 2 August.
It will be withdrawn from 3 August, according to a joint statement from National Treasury and the Department of Mineral Resources and Energy (DMRE) on Tuesday afternoon.
“Due to this significant monthly price increase, the Minister of Finance has today submitted a letter to the Speaker of the National Assembly, requesting the tabling of a two-month proposal for the extension of the reduction in the general fuel levy,” the statement said.
The revenue foregone from the extension is estimated at some R4.5 billion.
“Unlike the previous announcement, this proposal is expected to have an impact on the fiscal framework, as it will not be fully funded through a sale of strategic oil stocks,” the statement said.
It said that from 1 June, the DMRE will remove the demand side management levy of 10c per litre for inland 95 ULP, and that after a review and consultation by the DMRE, “it is proposed that the basic fuel price also be decreased by 3c per litre in the coming months”.
-Fin24
Diesel prices will rise by R1.10 (0.05% sulphur) per litre and R1.07 (0.005% sulphur) per litre respectively, while illuminating paraffin will be R1.56 more expensive per litre.
The maximum liquefied petroleum gas (LPG) retail price will fall by 51c per kilogram.
The fuel prices were pushed higher by oil, with the average Brent crude oil price increasing from US$104.78 a barrel to US$115.00 over the past month.
The increases are smaller than feared after Treasury decided to grant an extension of the reduction in the general fuel levy.
The petrol levy was cut by R1.50 a litre for April and May as government sought to relieve the economic stress of surging fuel prices. Around R6 billion of the state’s strategic oil reserves were sold to fund the levy cut. But the sale will not entirely fund the extension.
The R1.50 relief will be extended from 1 June until 6 July, followed by a downward adjustment to the relief for the second month - to 75c per litre from 7 July until 2 August.
It will be withdrawn from 3 August, according to a joint statement from National Treasury and the Department of Mineral Resources and Energy (DMRE) on Tuesday afternoon.
“Due to this significant monthly price increase, the Minister of Finance has today submitted a letter to the Speaker of the National Assembly, requesting the tabling of a two-month proposal for the extension of the reduction in the general fuel levy,” the statement said.
The revenue foregone from the extension is estimated at some R4.5 billion.
“Unlike the previous announcement, this proposal is expected to have an impact on the fiscal framework, as it will not be fully funded through a sale of strategic oil stocks,” the statement said.
It said that from 1 June, the DMRE will remove the demand side management levy of 10c per litre for inland 95 ULP, and that after a review and consultation by the DMRE, “it is proposed that the basic fuel price also be decreased by 3c per litre in the coming months”.
-Fin24
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