South Africa’s (SA) government said this Tuesday that it would lower its fuel levy for two more months to the end of June, cushioning the impact of the Iran war by stopping domestic fuel prices from rising even further.
The Finance and Energy Ministries said in a joint statement that in May the fuel levy would be reduced by R3 ($0.18) a litre for petrol and R3.93 ($0.23) a litre for diesel.
In June, the levy will be lowered by R1.5 ($0.09) a litre for petrol and R1.96 ($0.11) a litre for diesel.
The government of Africa’s biggest economy reduced the levy by R3 ($0.18) a litre for both petrol and diesel in April and had said it could offer some relief in May and June also.
SA adjusts fuel prices monthly using a formula that factors in movements in global crude oil prices, prevailing exchange rates and local taxes like the fuel levy.
–Reuters–
