South Africa considers cutting fuel levy amid Iran war price surge — Reuters

South Africa’s Finance Minister Enoch Godongwana is considering reducing the fuel levy to ease the impact of the ongoing conflict in Iran on domestic fuel prices, a senior government official told Reuters.

The official, speaking on condition of anonymity due to the sensitivity of the matter, said Godongwana is expected to announce his decision on March 31.

As Africa’s largest economy, South Africa adjusts fuel prices monthly using a formula that accounts for global crude oil prices, exchange rates, and local taxes, including the fuel levy. Price changes typically take effect on the first Wednesday of each month. The government has yet to announce new prices for April 1.

Without government intervention, domestic fuel prices are expected to rise due to the U.S. and Israeli military actions against Iran, which have pushed global energy costs higher.

Unions, business lobby groups, and political parties have called on the government to reduce the fuel levy to shield households from a sharp increase in fuel costs.

By Khagan Isayev