The Automobile Association has welcomed government’s decision to temporarily reduce the general fuel levy from R4.10 per litre to R1.10 per litre.
The measure, which will remain in effect until 5 May, is aimed at cushioning motorists against a sharper increase in fuel prices, driven largely by ongoing conflict in the Middle East.
The levy reduction is expected to cost the fiscus around R6 billion.
AA CEO Bobby Ramagwede said the organisation would continue advocating for the relief measure to be extended.
“As the AA, we will continue to lobby for the relief to be protracted. One has got to take into consideration that the government’s biggest problem is not revenue collection but rather expense management,” Ramagwede said.
He added that the financial impact on the fiscus should be weighed against the broader benefit to consumers and the economy.
“R6 billion a month is a number that could easily disappear within the fiscus, so asking for that to be in the form of relief to consumers and the broader economy at large is a really small request,” he said.