Fuel price latest: Extended relief on fuel levy needed

Fuel price latest: Extended relief on fuel levy needed

The Organisation Undoing Tax Abuse (OUTA)  has called on Minister of Finance, Enoch Godongwana to extend the R1.50 per litre temporary reduction of the general fuel levy beyond 31 May.

The reduction was put in place to relieve South Africans from going deep into their pockets when paying for fuel.

CALLS FOR FUEL LEVY REDUCTION TO BE EXTENDED

If the latest data from the Central Energy Fund (CEF) which regulates petrol prices in SA is anything to go by, then the petrol price could increase by R3 per litre in June, considering the fact that the fuel levy reduction is coming to an end in May.

CEF data indicates that petrol and diesel could increase for just under R2 per litre.

OUTA CEO, Wayne Duvenage said they have written to Godongwana to consider the extension of the reduction, failing which the price of petrol and diesel will increase to over R25 per litre in the coming months.

Duvenage said that extending the reduction in the levy will obviously affect National Treasury’s collections by roughly R2.8 billion a month, however the economy will be “significantly worse-off with petrol prices in excess of the R25 per litre mark”.

fuel levy
Photo: Stock Image / Pixabay

“OUTA has also suggested that in the event that this reprieve must be terminated, that the Minister considers a phased-in approach over three months at 50c a month.

“The high fuel price has an ongoing negative effect on the economy, affecting a wide range of issues such as food prices and commuter costs.”

Wayne Duvenage

Duvenage said they also believe that keeping the fuel levy reprieve in place for a longer period provides the Minister with an opportunity to seek greater public sector savings and encourage prudent spending habits.

PETROL PRICE FORECAST FOR JUNE

Here are the predicted ‘rand-per-litre’ petrol and diesel figures, which will come into effect in a few weeks’ time if we add back the suspended general fuel levy.

COASTAL REGIONS

  • Grade 93 Petrol: R24.11
  • Grade 95 Petrol: R24.40
  • Diesel wholesale: R24.83

INLAND REGIONS

  • Grade 93 Petrol: R24.76
  • Grade 95 Petrol: R25.15
  • Diesel wholesale: R25.45

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