South Africa’s President, Cyril Ramaphosa, has said the fuel levy reduction announced in March can’t be extended forever as that’s not sustainable.
The government announced the reduction of the duty imposed and the selling of part of its strategic oil reserves as ways to mitigate against the impact of rising crude prices stemming from Russia’s invasion of Ukraine.
The reduction of the duty imposed on each litre of fuel by almost 40% was meant to be in effect for two months, from April 6 until May 31.
Speaking about the rising cost of living in his weekly newsletter, President Ramaphosa said the cost of the fuel price relief is not sustainable as funds have to be diverted.
He says while international events “beyond our control impact the fuel price, there are things that can be done.” He added:
One of those is increasing agricultural output to mitigate rising food prices.
This will see more small-scale farmers being supported and freeing up state land for farming.
Ramaphosa also warned businesses not to exploit the situation saying the Competition Commission will monitor the market for food price extortion.