OUTA calls for an extension to fuel levy relief
The Organisation Undoing Tax Abuse (OUTA) has called on government to extent the fuel levy relief.
The reduction in the fuel levy was introduced in March by Finance Minister Enoch Godongwana as a way of offering relief to motorists amid the soaring fuel prices.
OUTA CEO Wayne Duvenage asked Godongwana to give motorists a further break from paying the fuel levy.
“With this temporary fuel levy reduction of R1.50 intended to be reversed on 31 May, we have asked thefinance minister to consider the extension of this reprieve, failing which the price of petrol and diesel will increase to over R25 per litre in the coming months.”
The price of fuel is expected to reach record highs amid a weakening rand and the ongoing war between Russia and Ukraine.
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Since Russia invaded Ukraine in February, the price of brent Crude oil has consistently traded above $110 a barrel.
Duvenage says if the attempts by the organisation to have the fuel levy put on hold are not successful then Godongwana should consider a phased-in approach.
“OUTA has also suggested that in the event that this reprieve must be terminated, that the minister considers a phased-in approach over three months at 50c a month.”
The price of fuel is currently R21.51/l while the price of diesel sells at just under R22/l.
