JOHANNESBURG – South Africa's government said on Tuesday it will reduce its fuel levy for two more months until the end of June, in a bid to cushion the impact of the Iran war by preventing domestic fuel prices from rising further.
The fuel levy will be cut by 3 rand ($0.1809) per liter for petrol and 3.93 rand per liter for diesel in May, the finance and energy ministries said in a joint statement.
In June, the levy will be reduced by 1.5 rand per liter for petrol and 1.96 rand per liter for diesel.
The government of Africa's biggest economy cut levies on both petrol and diesel by 3 rand per liter in April and said it may also extend some relief in May and June.
South Africa adjusts fuel prices monthly using a formula that takes into account fluctuations in global crude oil prices, prevailing exchange rates and local taxes such as fuel levies.
($1 = 16.5847 rand)