On 29 March, the Portfolio Committee on Mineral Resources and Energy proposed the idea of a “tax holiday” to parliament, in response to growing public concern over the country’s record-high petrol prices.
In response, Finance Minister Enoch Godongwana announced on 31 March that the general fuel levy (GFL) would see a temporary reduction of R1.50 a litre – which will be in effect from 16 April until 31 May 2022.
This sees the GFL reduced as follows:
- Petrol – From R3.93/litre to R2.43/litre
- Diesel – From R3.79/litre to R2.29/litre
Expected fuel prices
While official fuel prices for April have yet to be announced, the expectation is that prices are still set to increase for the coming month.
Mid-month data from the Central Energy Fund (CEF) suggested that South Africa could see the following fuel price increases from next week:
- Petrol 93 – Increase of R2.19 per litre
- Petrol 95 – Increase of R2.27 per litre
- Diesel 0.05% – Increase of R3.12 per litre
- Diesel 0.005% – Increase of R3.26 per litre
Based on these predicted increases, we can calculate what the expected fuel prices for April in South Africa could look like with the new tax holiday, and without it.
The table below details the results of this calculation.
|Expected April Prices – With Tax Holiday||Expected April Prices – Without Tax Holiday|
|Petrol 93 – R22.04||Petrol 93 – R23.54|
|Petrol 95 – R22.37||Petrol 95 – R23.87|
|Diesel 0.05% – R21.10||Diesel 0.05% – R22.60|
|Diesel 0.005% – R21.31||Diesel 0.005% – R22.81|