South Africa dey consider to reduce fuel levy sake of Iran war, official tok

South Africa Finance Minister Enoch ​Godongwana dey consider to reduce di fuel levy to lessen di impact of di Iran war on domestic fuel prices, one senior govment official ​tell Reuters.

Di official wey say make dem no mention im name sake of di sensitivity of di mata say Godongwana go announce im decision ​on Tuesday.

South Africa dey adjust fuel prices monthly and dey use formula wey dey factor in movements in global crude oil prices, di exchange ​rate and local taxes such as ​di fuel levy.

Price changes dey take effect on di first ‌Wednesday ⁠of evri month, but di govment neva announce di new prices wey go take effect on Wednesday, 1 April.

Witout ​govment intervention, ​domestic prices ⁠dey expected to jump sake of di US-Israeli war against ​Iran, wey don drive up global ​energy ⁠prices.

South African trade unions, business lobby groups and political parties don urge di govment to ⁠lower ​di fuel levy to ​shield households from big fuel price hikes.

Fuel levy fit cut fit mirror 2022 move

One energy official, wey also yarn wit Reuters on di condition say dem no go mention im name say govment dey consider relief wey dey similar to one 2022 decision to temporarily cut di general fuel levy following di ‌start ⁠of Russia war for Ukraine.

Dat reduction of 1.5 rand per litre remain in place for several months bifor dem lower and withdraw am.

South Africa central bank bin warn about inflationary risks from rising fuel prices for dia monetary policy meeting last week, and add say fuel inflation ​of more dan ​18% dey expected for di second quarter.

Di risk-sensitive rand don fall more dan 6% against di dollar since di Middle East conflict start, adding to ​upward pressure on pump prices.

Many petrol stations run dry

Many petrol stations dey temporarily dry, and dis don put major strain on di kontri fuel delivery system as motorists rush to fill up bifor govment set new price.

Di head of security of supply for di Fuels Industry Association of South Africa, Siganeko Magafela, say supply depots still get stock available, but delivery networks dey under pressure.

"Di logistics no fit keep up wit di demand for di service stations currently. Some companies dey report say di demand [for volumes] na three times more dan wetin dem fit normally [handle]," e tok.

Despite di disruption, Magafela say di good news be say supply still dey available for depot level.

"Di chances of recovery in terms of di backlog dey high… Na just a mata of timing," e tok.