South Africa’s Finance Minister Enoch Godongwana on Wednesday, 21 October, announced an additional two-month relief on the fuel levy as part of the mid-term budget presentation. The measure is expected to cost the state approximately $608.99 million in foregone revenue.
According to Reuters, Africa’s largest economy had already temporarily reduced the fuel levy for several months earlier this year to shield consumers from oil price shocks linked to the war with Iran.
South Africa imports the majority of the fuel it consumes, leaving it exposed to swings in international energy prices, which have experienced heightened volatility since the conflict in the Middle East erupted at the end of February.
“As we rebuild our fiscal reserves, the government is in a stronger position to respond, including by providing new temporary relief on the fuel levy,” Godongwana said.
The mid-term budget also indicates that the consolidated fiscal deficit for the current financial year is expected to come in at 3.9% of gross domestic product (GDP), slightly below the 4% forecast presented in the February budget.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=554377
