- Minister Enoch Godongwana said the government will slash fuel taxes by R3 to help people pay less for their fuel.
- The tax cut comes after oil prices jumped when the USA and Israel attacked Iran on 28 February last month.
South Africans will pay less for fuel after the government cut the fuel tax by R3.00 a litre for both petrol and diesel.
Finance Minister Enoch Godongwana shared the news at the South Africa Investment Conference in Johannesburg on Tuesday. He said the government wants to help people who are struggling to pay for fuel and other basic needs.
The move comes as the price of oil shot up by nearly 50%. This happened after the USA and Israel attacked Iran on 28 February. Other countries like South Korea are also taking steps to protect their people from these high costs.
Keep up with the latest headlines on WhatsApp | LinkedIn
Before this announcement, the tax on petrol was going to rise to R4.10 on Wednesday. The tax on diesel was set to go up to R3.93. The Road Accident Fund levy is also increasing to R2.25, BusinessTech reported.
Experts say this is a smart move to help the country. Michael Grobler from Ashburton Fund Managers said the cut will help stop prices from rising too fast. He said it will also keep the South African economy moving during this difficult time.
Even with this R3.00 discount, South Africans are still facing record high prices at the pumps.
The latest data shows that without this help, petrol could have jumped by 30% this week. The fuel tax usually brings in about R97-billion for the government every year.
This is not the first time the government has helped drivers in this way. They made a similar cut in 2022 when the war in Ukraine started. Godongwana said he is looking at what more can be done over the next two months to help struggling people.
