MOTORISTS can expect some relief after it was announced that fuel levy will be reduced by R3 per liter for petrol and diesel.
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Motorists can expect some relief after the announcement that the fuel levy will reduce by R3 per liter for both petrol and diesel in April.
According to reports, Finance Minister Enoch Godongwana made the announcement during an interview at the South Africa Investment Conference in Johannesburg on Tuesday (today).
He said the measure would be officially announced at a briefing later today.
The Central Energy Fund's last published fuel recovery data projected increases of R6 per litre for petrol and over R10 per litre for diesel. The official petrol price adjustments are expected today.
Dr Mark Burke, the DA’s spokesperson on finance, said they welcomed the fuel levy decrease.
He said it followed calls made by the DA last week for such relief.
“The DA proposed a R3,17 reduction with a funded plan and the minister came within close enough striking distance with his announcement today. We understand that for many South Africans, the over R7 increase in diesel and R2 increase in petrol prices will seriously damage budgets and affect business decisions. The DA looks forward to more details as to how this fuel levy relief will be funded.”
Burke added, however, that citizens cannot afford to take on more national debt.
“Taxpayers cannot be expected to fund this relief through some other form of taxation. The only viable route to funding this relief is to make spending more efficient.
"The National Treasury must refuse to grant permission to broken state entities to keep their huge annual surpluses. This discipline must be extended across entities. The Treasury also needs to look at the broader national balance sheet to give South Africans an urgent buffer.
“South Africa is able to move from being a country that responds to economic crises haphazardly and at the last moment, to a proud nation that plans and budgets in a far more proactive manner,” he said.
Lynette de Beer, interim chief executive officer of the National Credit Regulator (NCR), said South African consumers were cautioned to begin preparing responsibly for potential fuel supply disruptions expected in the coming weeks.
She said the anticipated shortages may place additional financial pressure on already strained households, particularly as consumers may need to adjust their daily commuting patterns, household budgets, and essential spending.
“Periods of economic uncertainty often create anxiety for households, but consumers should resist the urge to panic. Responsible budgeting, careful planning of transport needs, and avoiding unnecessary borrowing will help households navigate this period more effectively. The NCR encourages consumers to remain financially disciplined and to seek assistance early should they experience financial strain.”
De Beer added that the NCR would continue to monitor the situation closely and would work with government and industry stakeholders to provide guidance and consumer protection information where necessary.