FUEL relief hangs in the balance as Finance Minister Enoch Godongwana prepares to announce whether government will extend the temporary fuel levy relief or allow it to lapse.
The relief, introduced in March and implemented from 1 May, saw the fuel levy reduced by R3 a litre, a move that brought some relief to motorists battling rising living costs and volatile fuel prices.
But while the cut has eased pressure at the pumps, government said it's costing the country big money.
"The South African Revenue Services (Sars) has collected R2 trillion, which is a major achievement. However, what we miss is that expenditure is R2,4 trillion, which means we are R400 billion short. In addition to that, debt servicing costs are also of a similar amount, which means this year we have to borrow about R800 billion," Godongwana said.
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National Treasury has also warned that the fuel relief is putting added strain on revenue collection, estimating that the R3 per litre reduction is costing about R6 billion in lost tax revenue each month.
The decision comes at a time of heightened global uncertainty, with tensions in oil-producing regions adding pressure to already unstable energy markets. This has fuelled growing calls for government to extend the relief beyond its current period.
Godongwana has previously indicated that he is still weighing up the matter, saying he is "applying his mind" and consulting before making a final decision.
"The extension of the fuel levy, I am applying my mind to that issue at the appropriate time. I will probably make the necessary announcement on the 28th, on Tuesday, in that regard," he said in Parliament.
For now, motorists remain on edge, hoping for good news that could keep fuel prices from climbing further, while government walks a tightrope between supporting consumers and managing a stretched national budget.
