- Minister Enoch Godongwana said the government would cut fuel taxes by R3 to help people pay less for their fuel.
- The tax cut comes after oil prices surged after the US and Israel attacked Iran on February 28 last month.
South Africans will have to pay less for fuel after the government cut fuel tax by R3.00 per liter 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 those who are struggling to pay for fuel and other basic needs.
This step has been taken after the price of oil increased by almost 50%. This happened when America and Israel attacked Iran on 28 February. Other countries, such as South Korea, are also taking steps to protect their people from these high costs.
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Before this announcement, the tax on petrol was due to increase 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 by R2.25, businesstech Informed.
Experts say this is a smart step to help the country. Michael Grobler of Ashburton Fund Managers said the cuts would help prevent prices from rising too quickly. He said it would also keep the South African economy dynamic during these difficult times.
Even with this R3.00 rebate, South Africans are still facing record high prices at the pumps.
The latest data shows that without this help petrol could have jumped as much as 30% this week. Fuel tax usually earns the government about Rs 97 billion every year.
This is not the first time the government has helped drivers in this way. He made similar cuts in 2022 when the war in Ukraine began. Godongwana said he was looking at what more could be done in the next two months to help struggling people.