South African authorities will reduce the fuel levy for a period of one month to curb fuel price increases amid the escalation of the conflict in the Middle East. This was announced in a joint statement by the country's ministries of finance and energy.
According to the authorities' decision, the fuel levy will be reduced by 3 rand (about 18 cents) per liter in April. The lost tax revenue, estimated at approximately 6 billion rand (about $350 million), is expected to be compensated through other mechanisms.
Finance Minister Enoch Godongwana stated that the measure is temporary, and authorities are already working on other mechanisms to curb fuel price increases.
"I will temporarily reduce the fuel levy for April by three rand and continue to discuss what measures can be taken in the next two months," he said on March 31 at an investment conference in Johannesburg.
In a joint statement, the ministries emphasized that the measures taken are aimed at providing short-term relief to consumers and "will not have a significant impact on the budget."
Despite the measures taken, fuel prices in South Africa continue to rise, according to Reuters. Authorities estimate that in April, gasoline prices will increase by about 15%, and diesel prices by up to 40%.
In March, several African countries also announced measures to curb fuel price increases. Notably, Egyptian authorities introduced energy consumption restrictions, including reducing operating hours for commercial facilities and reducing street lighting, amid rising energy prices.
