- The fuel levy cut will be soon ending and motorists could see an increase of almost R3.50 a litre from next month
- The levy was initially cut in April as a way to help motorists reduce the pressure from the high fuel prices
- If the levy cuts do not continue, the price of fuel will exceed a record high amount of R25 a litre from the end of May
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JOHANNESBURG - The scraping of the fuel levy that has been the saving grace to motorists will be reinstated at the end of May. The Minister of Resources and Energy Gwede Mantashe said fuel prices are expected to soar upwards towards an increase of R3.50 a litre next month.
The levy was cut in April as a way to help motorists reduce the pressure from the high fuel prices.
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The minister said his department would need to consult National Treasury to determine if the levy cut could be extended. Fin24 reported that the possible funds that could be raised from selling reserves would be enough to reduce the levy for two months.
Mantashe said a meeting with Treasury will be held to determine if there are any other possible solutions to prevent the fuel price increase.
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In the event that the levy cuts cannot continue, the price of fuel will exceed a record high cost of R25 a litre, according to SowetanLIVE. Mantashe added that the Resources and Energy Department has implemented several measures on energy security and supply.
SA not buying it
Social media users believe that government can do more to prevent the fuel price from increasing:
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“The government is not fighting fuel prices at all.”
“Take away levies.”
“I call BS we export fuel to our neighbours at a fraction of what we pay, let them cut the levies it's not like they use it to better the country.”
South Africans react to fuel price increase despite government’s assistance
In a related matter, Briefly News also reported South Africans are set to brace for another fuel hike however, the government has intervened and prevented the situation from being worse. The decision to remove the fuel levy has allowed South Africans to not be subjected to a large increase.
The price of 93 Octane petrol has increased by 28 cents per litre and 95 Octane by 36 cents per litre. Diesel has also increased by R1.58-cents and R1.68 cents per litre, according to SABC News.
Finance Minister Enoch Godongwana said the rising fuel prices are due to the conflict between Russia and Ukraine, News24 reported.
Source: Briefly News