South Africa has reduced its fuel tax to cushion the impact of rising global oil prices driven by tensions involving Iran.
The government announced a three rand per litre tax cut for one month, according to Finance Minister Enoch Godongwana.
Despite this, fuel prices are still rising sharply. Diesel is set to increase by over 40 percent, petrol by about 15 percent, while paraffin widely used by low-income households will surge by 93 percent.
The tax relief will cost the government about six billion rand, though officials say the measure will remain fiscally neutral. However, Enoch Godongwana admitted uncertainty over how the revenue gap will be covered.
The price surge is linked to global oil disruptions, particularly through the Strait of Hormuz, amid ongoing geopolitical tensions.
While major shortages have been avoided, panic buying has led to some stations running dry, and minibus taxi operators have warned of possible fare increases.
