Fuel levy suspended for one more month, adjusted for July

The fuel levy is being suspended for a further two months but with different amounts per month.

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JOHANNESBURG - The fuel levy will be suspended for another month and will be adjusted for July.

The finance minister submitted a letter to the speaker of the National Assembly, requesting the tabling of a two-month proposal for the extension of the reduction in the general fuel levy.

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 there will be a downward adjustment to the relief for the second month to 75c per litre from 7 July 2022 to 2 August 2022.

The temporary relief will be withdrawn from 3 August.

The revenue forfeited from the relief extension is estimated at R4.5 billion.

Unlike the previous announcement, the proposal is expected to impact the fiscal framework as it will not be fully funded through the strategic sale of oil stocks.

From 1 June, the mineral resources department will remove the demand side management levy of 10c per litre that has been applied to inland 95 ULP.

In a statement, it said the basic fuel price would also be decreased by 3c per litre in the coming months. A review will also be completed to assess the retail, wholesale, distribution and secondary storage margins over the medium term.

This article first appeared on CapeTalk : Fuel levy suspended for one more month, adjusted for July