Small Adjustment: Petrol price to drop only 1 cent, diesel by more than R1
This may seem like scant relief but another hefty price hike would have been in the offing were it not for the fuel levy reductions announced in last month’s mini-budget. That in turn has partly been diluted by an increase in the slate levy of over 48 cents per litre, bringing it to 135.84 cents per litre.
South African motorists have been granted a slight reprieve from rising fuel costs, with the price of petrol decreasing by just one cent per litre and diesel by more than R1. This modest reduction is a result of fuel levy adjustments announced in the previous budget. The general levy, which supports infrastructure, and the RAF levy, which aids road accident victims, have been reduced, partially offset by an increase in the slate levy.
The increase in slate levy has diluted the overall impact, bringing it to 135.84 cents per litre. While this may seem like a small concession, it could help curb inflation and potentially influence domestic interest rates. The relief comes as a result of a R10-billion return from the Central Energy Fund to the National Revenue Fund, which has been placed in the Contingency Reserve for emergencies.
The projected revenue increase for the financial year has also been revised upwards by R17.1-billion, providing the necessary funds for this relief. Despite the limited impact, this temporary tax cut aims to ease the burden on South African families, particularly during the holiday season.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
