South Africa (SA) could lose nearly $880 million in revenue if the temporary reduction in the general fuel levy is extended to June, Finance Minister Enoch Godongwana has warned.
Godongwana, alongside Mineral and Petroleum Resources Minister Gwede Mantashe, confirmed that the levy has been cut from 24 United states (US) cents to 6 US cents per litre, easing fuel prices by about 17 US cents.
The intervention comes as petrol prices were set to rise by around R5 per litre ($0.27), with diesel expected to jump by about R10 ($0.54).
Speaking at the Sixth SA Investment Conference in Sandton, Johannesburg, Godongwana said April alone would result in a revenue loss of roughly R6 billion ($324 million). He added that extending the relief beyond June may not be sustainable, with total losses potentially reaching about R15 billion ($810 million) over three months.
–ChannelAfrica–
