Motorists will receive further assistance from Government, as from June, to ease the financial pressure brought on by the drastic increase in oil and fuel prices.
Finance Minister, Enoch Godongwana yesterday announced the first of these measures – the reduction of the general fuel levy by R1.50 per litre of fuel – which comes into effect on Wednesday.
He said Treasury would also, in two months, introduce a price cap on 93 octane petrol which would allow retailers to sell fuel below the regulated prices.
He says these additional relief measures will come into effect in the first week of June 2022.
Watch his full announcement here.
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Minister of Finance Enoch Godongwana's full speech, and the joint media statement on the short-term relief measures to address fuel price increases, are now available on the National Treasury website: https://t.co/5wDMcj9opv #FuelPriceRelief #FuelPrices pic.twitter.com/QviVJJSvSG
— National Treasury (@TreasuryRSA) March 31, 2022
Finance Minister Enoch Godongwana says the R11-billion Development Policy Loan, recently obtained the from the World Bank, has been obtained under very favourable conditions.
The Minister says the loan would help the country service its current budget deficit.
During a Parliamentary briefing earlier today, Godongwana said Government needs to raise around R630-billion to service its budgetary obligations.
He says Government is raising funds from various sources.
Follow the full Parliamentary briefing here.
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“The World Bank loan has a cheaper interest rate. The Bank also gave us a repayment holiday of 3 years on the loan. So that is the rationale behind taking this loan,” Minister Godongwana responding to questions in @ParliamentofRSA on $750million World Bank Development Policy Loan
— National Treasury (@TreasuryRSA) February 1, 2022
“We need to raise R630bn. The World Bank’s R11bn loan is part of this. We are raising this money from various sources, including Development Finance Institutions such as the New Development Bank and others, not just the World Bank,” Minister Godongwana briefing @ParliamentofRSA
— National Treasury (@TreasuryRSA) February 1, 2022
