South African motorists have all been in a metaphorical waiting room as of late, painstakingly waiting for the news as to whether the government will scrap the general fuel levy or not.
For context, the fuel levy was decreased amidst petrol hike woes as influenced by the Russia-Ukraine conflict, but the relief was only temporary.
This decrease saw the fuel levy cut by R1.50 a litre in April.
However, what would happen for the month of June has been a rollercoaster of speculation.
June was predicted to see price hikes of petrol going up by around R3.50 a litre, with a lack of certainty as to what would happen with the general fuel levy.
Good news has, however, zoomed in. The Minister of Finance has submitted a letter to the speaker of the National Assembly for a two-month extension of the fuel levy’s reduction, set to soften the blow of price hikes predicted for Wednesday, as the national treasury expressed in a joint statement.
The extension is set to serve for two months and will run from 1 June to 6 July, followed by a downward adjustment to the relief for the second month to 75c per litre from 7 July 2022 to 2 August 2022.
The statement also adds that:
“From 1 June 2022, the DMRE will remove the demand side management levy of 10c per litre that has been applied to inland 95 ULP. After a review and consultation by the DMRE, it is proposed that the basic fuel price also be decreased by 3c per litre in the coming months. Government intends 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.”
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Picture: Cape {town} Etc gallery