By Thebe Mabanga
Government is expected to cut the fuel levy by R3 per litre in order to cushion the expected surge in petrol prices.
Finance Minister Enoch Godongwana confirmed the move at the South African Investment Conference on Tuesday, noting that the measure is for April, with further mitigation for the months ahead set to be negotiated separately.
Oil prices have increased by 50% since the start of the war against Iran on February 28, and fluctuated between $107 and $113 per barrel at the time of writing.
This sharp increase, plus weakening of the rand, is expected to raise petrol prices sharply in the months ahead.
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The Central Energy Fund forecasts a petrol price increase of about 30%, which would take the price to R 26 per litre for April.
Treasury is expected to announce details later on Tuesday.