Finance Minister, Enoch Godongwana has brought forth consideration for a temporary fuel levy holiday. This means that motorists could temporarily pay less for fuel to easy the coming fuel price increase.
Godongwana proposed that a temporary R1.50 per litre levy reduction should be introduced between April and the 31st of May 2022.
Oil has tanked over -6% since US President Joe Biden suggested to releasing 180 mln barrels from US strategic reserve. On the other hand, OPEC is not looking to increase production.
The rand remains firm against the dollar. Should the Rand continue this trajectory, the impact of increasing oil prices due to sanctions imposed on Russia could be eased.
The move by the finance minister to temporarily reduce fuel levies by R1.50 could buy us some time.
