The temporary gasoline subsidy program, which the South African government began in April and ended in August, saw the most developed economy in Africa lower its fuel tax, boosting tax revenues by 6 billion rand.
After a statement by the nation’s Department of Mineral Resources and Energy was made public in an email on Monday, this was revealed in a report by Bloomberg published today.
In addition to announcing an 11 percent hike in fuel prices, South Africa said that a 1.50 rand ($0.09) reduction in the general fuel charge that it implemented in April will be reduced to 75 cents from July 6 and will be eliminated from August 3.
The temporary fuel subsidy program, which the South African government started in April and saw Africa’s most industrialized economy reduce its fuel levy, ending in August will increase tax revenues by 6 billion rand, according to the announcement.
This was revealed today in a report by Bloomberg following the publication of a statement by the nation’s Department of Mineral Resources and Energy in an email on Monday.
The general fuel levy, which South Africa introduced in April, will be reduced from 1.50 rand ($0.09) to 75 cents from July 6 and will be eliminated from August 3. The country also disclosed an increase in fuel prices of 11%.
It stated that the 6 billion rand in lost tax revenue from the 40% levy decrease is anticipated to be made up through the sale of strategic oil reserves scheduled to take place this fiscal year.
