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Temporary Reduction in General Fuel Levy Extended

June 1, 2022

Department of Mineral Resources and Energy

Plans are afoot to extend the reduction in the general fuel levy.

The mineral resources and energy department confirmed this in a statement on the temporary reduction in the general fuel levy.

The department confirmed that the finance minister has submitted a letter to the speaker of the national assembly requesting the tabling of a two-month proposal for the extension.

“This will take the form of a continuation of the relief of R1.50 per litre for the first month, from 1 June 2022 to 6 July 2022, and then a downward adjustment to the relief for the second month to 75c per litre from 7 July 2022 to 2 August 2022.”

The department pointed out that the temporary relief will be withdrawn from 3 August 2022.

“The proposed temporary reduction in the fuel levy will be accommodated in the current fiscal framework in a manner that is consistent with the fiscal strategy outlined in the Budget.”

Any changes, if required, will be announced during the 2022 Medium Term Budget Policy Statement.

The department also indicated that government aims to “continue with consultations and proposals to remove the price cap on 93 ULP, which will partially deregulate the market and introduce more competition to lower pump prices”.

A review of the “Regulatory Accounting System (which includes the retail margin, wholesale margin and secondary storage and distribution margins) will be completed by the DMRE to assess the potential to lower margins over the medium term”.