General fuel levy cut to cushion latest petrol price hike

Both grades of petrol will go up again, with 93 octane set to increase by 28 cents a litre and 95 octane by 36 cents. But this is still significantly lower than what was forecast.

Picture: Eyewitness News.

JOHANNESBURG - The effects of a reduced general fuel levy will provide much-needed relief for motorists with another fuel price increase looming.

Both grades of petrol will go up again, with 93 octane set to increase by 28 cents a litre and 95 octane by 36 cents.

But this is still significantly lower than what was forecast.

These hikes come in the wake of increased international oil prices due to Russia's invasion of Ukraine.

Last week, Finance Minister Enoch Godongwana announced a temporary emergency intervention to reduce the general fuel levy by R1.50 per litre to cushion the blow on cash-strapped consumers.

Without this intervention, the price of petrol and diesel would go up by close to R2 and R3 respectively.

The Automobile Association's Layton Beard said that the cut in the levy had served its purpose.

"The intervention to cut the GFL is significant as it shows government is taking the issue of rising fuel costs seriously, which is to be welcomed. It has also indicated that it is looking at several proposals to deal with rising fuel costs into the future," Beard said.

But he said that government's long-term plan should be implemented soon.

"These should be fast-tracked as the trend of increasing fuel prices is likely to continue in the short- to medium-term, especially as the situation in the Ukraine remains unresolved which is adding pressure to the national petroleum product price and, in turn, to local prices," he said.

The new petrol prices will come into effect from midnight.