Treasury to outline fuel price plan in October - Masondo
Deputy Finance Minister David Masondo says Treasury will use the Medium-Term Budget Policy Statement in October to outline government’s plans to mitigate the impact of the high fuel price.
Masondo briefed the Standing Committee on Appropriations and Select Committee on Appropriations in Parliament on Wednesday.
On Tuesday, the Energy Department announced that petrol will go up by between R2.33 and R2.43 a litre in June.
Diesel will cost between R1.07 and R1.10 more a litre while illuminating paraffin will increase by R1.56 cents a litre.
The record-breaking hike comes in spite of government’s move to extend the reduction of R1.50 to the general fuel levy.
Masondo told MPs that the reduction in the levy will leave a R4.5 billion hole in government’s finances.
"To mitigate this, we will continue to observe the situation and present options in October during the MTBPS and announce the appropriate measures to ensure the fiscal framework presented in February is still intact,” he said.
“At that point, we would have looked at different options available. If we did not undertake this measure the fuel price would have increased by four rands."
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