South Africa proposes fuel levy cut extension

South Africa’s government is proposing to extend a cut in fuel levy until early August to ease pressure on consumers from high fuel prices

In a joint statement the National Treasury and Department of Mineral Resources and Energy said the estimated cost of the two-month proposal in foregone revenue was 4.5 billion rand

The statement said Minister of Finance had submitted a letter to Speaker of National Assembly, requesting the tabling of a two-month proposal for the extension of the reduction in the fuel levy.

In March, government announced a temporary reduction in fuel levy of 1.5 rands per litre for two months, as fuel and food prices continue to rise.

The reduction was due to expire at the end of May but the new proposal is for June 1 to July 6, before being lowered to a 75 cents a litre reduction from July 7 to August 2.

However, starting August 3, the relief would be withdrawn.