Cape Town – The National Treasury has reportedly granted the extension of R1.50 fuel levy for an additional two months, until the beginning of August.
This was to soften the fuel prices which increased on Wednesday.
According to EWN, the price of petrol went up by between R2.33 and R2.43 a litre, while the price of diesel increased by between R1.07 and R1.10.
Without an extension of the cut, petrol prices would have been hiked by almost R4.00, pushing the prices to above R25.00 per litre, Fin24 reported.
Through the extension, R1.50 will be taken off the general fuel levy on June 1, and will then be halved to 75 cents per litre in July 7 until August 2.
It will be withdrawn from August 3, said the report.
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The main contributing factors to the fuel increase, according to BusinessTech include:
- Increasing demand amid the summer driving season in the northern hemisphere.
- EU discussions regarding imposing sanctions on crude oil and petroleum products from Russia.
- The increase of crude oil throughput by refiners to take advantage of high refining margins.
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Compiled by Sinothando Siyolo
