In a decisive intervention to shield South Africans from soaring global energy costs and protect consumers from further burden, National Treasury and the Department of Petroleum and Mineral Resources (DMPR) have announced a temporary R3 reduction to the general fuel levy.
The measure, which is effective from today is designed to bring immediate financial relief to motorists while maintaining the stability of the country’s fuel supply system.
The reduction means that the fuel levy will fall from some R4.10 per litre to R1.10 per litre of petrol and reduce from R3.93 to R0.93 per litre of diesel.
“In reaching this decision, the Minister of Finance sought to balance the socio-economic impact on the country and welfare impact on South African consumers, specifically regarding food and transport inflation, with the fiscal objectives announced in the February Budget.
“It is estimated that the partial reduction in the fuel levy will cost around R6 billion in foregone tax revenue for the one-month period. The relief measure will be re-evaluated on a monthly basis for the following two months,” a joint statement read.
The adjusted fuel prices were announced by the DMPR on Tuesday, which would have meant much steeper increases barring the fuel levy cut.
The adjusted prices for April are:
- Petrol 93 (ULP & LRP): R 3.06 per litre increase.
- Petrol 95 (ULP &LRP): R 3.06 per litre increase.
- Diesel (0.05% sulphur): R7.37 per litre increase.
- Diesel (0.005% sulphur): R7.51 per litre increase.
- Illuminating Paraffin (wholesale): R11.67 per litre increase.
- Single Maximum National Retail Price for Illuminating Paraffin: R15.60 per litre increase.
- Maximum Retail Price of LPGas: R1.08 per kg) increase and R1.23 per kg increase in the Western Cape.
The two departments assured South Africans that despite reports to the contrary, there is “sufficient fuel supply in the country to meet current and projected demand”.
“Reports of shortages in certain areas are largely due to localised distribution and logistical challenges driven by panic buying rather than a lack of national fuel stocks and these are expected to self-correct in the next coming days.
“Motorists and businesses are encouraged to purchase fuel responsibly and avoid unnecessary stockpiling,” the statement continued.
Furthermore, the two departments reiterated government’s commitment to “balancing economic sustainability with the need to protect consumers” while the DMPR continues
“Work is underway on a broader package of measures to support households and key sectors of the economy. Further details on additional support measures will be announced in due course,” the statement said.
The price of paraffin
In a post on social media platform X, the DMPR explained that the price of paraffin does not include any levies or taxes.
This after the price of the fuel increased by R11.67 for wholesale and some R15.60 for the Single Maximum National Retail Price for Illuminating Paraffin.
“South Africa, the pricing structure of illuminating paraffin is specifically designed to provide relief to consumers.
“Unlike petrol and diesel, paraffin does not include fuel levies and most taxes, as a deliberate policy measure to keep it as affordable as possible, given its importance to low-income households. As a result, reductions in fuel levies cannot be applied to offset increases in paraffin prices,” the department said.
The DMPR assured that the increase “does not signal any reduction in government support for vulnerable households”.
“As indicated in the earlier statement, work is underway to develop targeted measures to cushion the poor from the impact of high energy costs. These efforts form part of a broader commitment to mitigate the effects of rising living expenses.
“Government remains firmly committed to protecting vulnerable households and continues to implement both immediate relief interventions and longer-term measures aimed at improving energy affordability and ensuring security of supply for all,” the post read. – SAnews.gov.za
