South Africa slashes its fuel levy for a month to offset soaring global oil prices, but diesel and petrol still see steep increases of 40% and 15% respectively.

JOHANNESBURG: South Africa has temporarily cut its fuel tax to cushion consumers from a global oil price surge.

The general fuel levy will be reduced by three rand per litre for one month, the finance and petroleum ministers announced.

Despite this relief, pump prices are still rising in one of the steepest increases on record.

Diesel will increase by more than seven rand per litre, a 40% jump, while petrol will rise by about 15%.

Paraffin, crucial for lower-income households, will surge by 93%.

The tax cut will cost the government about six billion rand in foregone revenue.

Officials stated the measure is designed to be fiscally neutral, with losses recouped elsewhere.

Finance Minister Enoch Godongwana admitted uncertainty, telling journalists, “I don’t know where I’m going to find this money for now.”

The government said work is underway on a broader package to support households and key economic sectors.

Global oil prices have soared since the US-Israeli war against Iran disrupted tanker shipping through the Strait of Hormuz.

South Africa has largely avoided the widespread fuel queues seen in some regional peers.

Some stations did report running dry as motorists rushed to fill up ahead of the price hikes.

Minibus taxis, the country’s main public transport, have threatened to hike fares in response.

 The Sun Malaysia