A decision to temporarily reduce the general fuel levy by R1.50 has been welcomed by the agricultural sector. This comes after finance minister Enoch Godongwana made a temporary emergency intervention to reduce the general fuel levy, saying that it would reprieve motorists from next month’s expected R3.85 petrol increase.
Godongwana made a proposal to mitigate the impact of escalating fuel prices which will be included in the 2022 Rates and Monetary Amounts and Amendments of Revenue Laws Bill..
This includes “a temporary reduction in the general fuel levy of R1.50 per litre for the period April 6 to May 31. This will reduce the levy for petrol from R3.85 per litre to R2.35. The levy on diesel will be reduced from R3.70 per litre to R2.20,” said Godongwana.
Meanwhile, Agri SA welcomed the announcement adding that it was a necessary intervention to buttress the agricultural sector and consumers against the impact of rising fuel prices on the cost of food.
Kulani Siweya, agricultural economist with the organisation,, pointed out that on 14 March 2022 the organisation called on government to suspend the fuel levy to relieve pressure on consumers. These announced measures will help to mitigate some of the upward pressure on food prices, he said.
“Agri SA also notes the minister’s proposal for overdue long-term changes and will study the implications of these proposals for the sector.
“Agri SA notes that the interventions announced only extend to May 2022. It is essential that government be amenable to the expansion of these interventions depending on the conditions prevailing in the global fuel market at the end of the two-month period,” Siweya said.
The agricultural organisation said that it would would continue to engage its members, communities and government to ensure that they keep South Africans adequately supplied with food in these uncertain and difficult economic times.
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