'No cut in fuel levies'

Fri, 13 Jun 2008

There will be no cut in the current fuel levies, but government will consider other measures to ease the burden of rising prices on consumers, government communications head Themba Maseko said on Thursday.

Briefing the media after Cabinet's fortnightly meeting on Wednesday, he said South Africa's fuel levy was a specific tax which was adjusted once a year and remained constant, irrespective of changes in the fuel prices.

This differed from a percentage-based duty that would fluctuate along with the changes in fuel prices.

The current per litre levy on diesel was 111 cents and 127 cents on petrol.

The Road Accident Fund Levy was 46.5 cents per litre and the Southern African Customs Union levy was four cents per litre.

These levy amounts remained the same for a full year irrespective of changes in the price of fuel.

"The meeting resolved that the ministers of finance and minerals and energy should consult further with a view to identifying the most desirable, practical and possible ways of mitigating the impact of the rising cost of fuel on food prices and other goods and services.

"The ministers will present a package of proposals to Cabinet in the near future," Maseko said.