The Pietermaritzburg Economic Justice and Dignity Group has welcomed government’s R10-billion fuel levy relief package but says contingency measures are needed should fuel prices remain high after the temporary intervention ends.
The relief, which takes effect on 4 November, will see the diesel levy reduced by R3 per litre and the petrol levy by R1.50 per litre. The measures will gradually be phased out by January 2027.
The group’s programme coordinator, Mervyn Abrahams, says the intervention could help stabilise transport costs and ease pressure on the broader economy.
Abrahams says the larger reduction in the diesel levy is particularly important because diesel is widely used in agriculture and the logistics sector.
He says reducing diesel costs could help contain transport and production expenses, while limiting the risk of further inflationary pressures.
Abrahams has, however, stressed the importance of government preparing contingency plans to protect consumers if fuel prices remain elevated once the relief measures come to an end.