‘Historic’ fuel price hike kicks in at midnight – government urges calm

While motorists are set to pay hefty prices at the fuel pumps from midnight tonight, government has announced temporary relief measures to alleviate pressure on consumers,reportsZululand Observer. The price of petrol will increase by R3.06 cents per litre while diesel prices are set to soar by R7.37 per litre.Illuminating paraffin users will also pay R11.67 cents per litre more this month. The ‘historic’ adjustments were announced by the Department of Mineral and Petroleum Resources (DMPR) today.

This is amid ongoing geopolitical tensions that have caused oil prices to skyrocket, impacting fuel prices and supply globally. The DMPR and National Treasury announced that government has agreed on ‘immediate intervention for the next month, and a broader package of measures to support households and key sectors of the economy’. These measures include a temporary reduction in the general fuel levy.

The general fuel levy is temporarily reduced by R3 per litre from Wednesday April 1 to Tuesday, May 5.This will reduce the general fuel levy for petrol from R4.10 per litre to R1.10 per litre and reduce the general fuel levy for diesel from R3.93 per litre to R0.93 per litre for one month.“These amounts exclude other levies such as the Road Accident Fund levy and the Carbon Fuel Levy,” says Godongwana. It is estimated that the partial reduction in the fuel levy will cost around R6b in foregone tax revenue for the one-month period. Treasury says the relief measure will be re-evaluated on a monthly basis for the following two months.

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The public has also been reassured that ‘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,” says Godongwana. National Treasury says work is also underway on a broader package of measures to support households and key sectors of the economy.

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