South Africa’s Finance Minister Enoch Godongwana on Wednesday announced two months of additional fuel price relief in a mid-year budget speech, saying it would cost 10 billion rand ($608.99 million) in foregone revenue.
Africa’s biggest economy already reduced its fuel levy for several months earlier this year to cushion consumers from the oil price shock linked to the Iran war.
South Africa imports most of its fuel, making it exposed to swings in global energy prices, which have been highly volatile since the Middle East conflict erupted in late February.
“Because we have rebuilt fiscal buffers, government is in a stronger position to respond, including by providing temporary fuel levy relief again,” Godongwana said in his speech.
The mid-term budget showed this fiscal year’s consolidated budget deficit was now seen at 3.9% of gross domestic product (GDP), marginally lower than the forecast of 4.0% of GDP given in the main February budget.
