Extended relief on fuel levy needed

OUTA asks Minister of Finance to give motorists a further break on the fuel levy

19/05/2022 14:01:16

Extended relief on fuel levy needed 


OUTA has called on Minister of Finance Enoch Godongwana to extend the R1.50 per litre temporary reduction of the general fuel levy beyond 31 May.

“With this temporary fuel levy reduction of R1.50 intended to be reversed on 31 May, we have asked the Finance 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,” says OUTA CEO Wayne Duvenage.

Duvenage says that extending the reduction in the levy will obviously affect National Treasury’s collections by roughly R2.8 billion a month, however the economy will be “significantly worse-off with petrol prices in excess of the R25 per litre mark”. OUTA has also suggests 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 high fuel price has an ongoing negative effect on the economy, affecting a wide range of issues such as food prices and commuter costs.

OUTA also believes that keeping the fuel levy reprieve in place for a longer period provides the Minister with an opportunity to seek greater public sector savings and encourage prudent spending habits.


OUTA’s letter to the Minister is here.

A soundclip with comment by OUTA CEO Wayne Duvenage is here.


Picture: Pixabay