JOHANNESBURG - The South African government has decided to sacrifice 70 percent of the fuel levy to give a slight relief to consumers amidst impending fuel hikes.
While other countries slashed the levies by 50 and 60 percent, the Department of Mineral Resources and Petroleum Deputy Director-General, Tseliso Maqubela, the government saw it fit to dig deeper into their own coffers to do more.
The fuel levy is an amount charged on every litre of fuel sold in order to fund government expenditure programmes.
Fuel levies are generally targeted to higher earning consumer, however, the poorer consumers are also affected. While South Africa does not have the most expensive fuel, it is in the top 10 places where it is expensive to fill up.
The R3 levy cut, according to government, is only temporary for one month. However, Maqubela says this allows for them to look at other measures and find other places in which the consumer can be cushioned.
"We are busy with that work currently, but a 70 percent reduction was all that could be done at this stage," he says.
There is still global uncertainty with no formal direction as to what is happening with the war. It has currently been paused, with US President Donald Trump saying they are in talks with Iran. The Iranian government has denied that any talks have taken place.
The Strait of Hormuz remains closed, and if the situation persists, governments might be stretched to look at long-term solutions.
The department has, since March, been assuring that the country's oil supply is stable. Maqubela says they continue to monitor the situation.
"The Ministers who have been tasked to look into this will make the necessary announcements," he says.
"One of the things, for example, that we have to think about is how do we minimise the impact of this on food inflation," he adds.
On Tuesday, and well into the night, motorist flooded petrol stations looking to fill their vehicles ahead of the increase. There were some stations that ran out of fuel.
Maqubela says that is not an indicator of the times where South Africa might fight itself.
"There is sufficient fuel in the country," he reiterated, as the department has been announcing since March.
"The shortage were as a result of logistics as we respond to what the markets want and people panic-buying, no matter how much we said there is enough fuel," he explains.
READ: Temporary relief for motorists as govt cuts fuel levy by R3
The rush to the fuel stations meant that buying, stocking up and logistics couldn't cope. Maqubela says all should be back to normal in 48 hours.
As many South Africans get ready for Easter travel, Maqubela says the department is now focusing on catering for highway fueling stations over the next few days. This is to ensure that motorists are not disadvantaged on the country's highways in their travels.