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ASPASA Welcomes Fuel Price Relief Measures

Dennis Ayemba by Dennis Ayemba
May 23, 2022
Reading Time: 2 mins read
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ASPASA Welcomes Fuel Price Relief Measures

Surface Mining Industry Association (ASPASA) has welcomed the recent bold decision by government to reduce the fuel levy and soften the impact of rising oil prices on the local market

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Ministers Enoch Godongwana and Gwede Mntashe announced recently that the general fuel levy is temporarily reduced by R1.50 per litre from 6 April 2022 to 31 May 2022. This will reduce the general fuel levy for petrol from R3.85 per litre to R2.35 per litre and reduce the general fuel levy for diesel from R3.70 per litre to R2.20 per litre for two months. These amounts however, exclude other levies such as the Road Accident Fund levy and the Carbon Fuel Levy.

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“As an industry that is heavily reliant on transport, we welcome this decision as it will directly impact the cost of mining per ton as well as the end use pricing. When the input costs are decreased we are able to make adjustments accordingly and therefore have a positive impact on the industries we serve,” says ASPASA director Nico Pienaar.

He adds that the escalating conflict in the Ukraine is likely to have a long term effect on fuel prices in months to comer and advises mining and transport companies should urgently seek fuel saving initiatives to counter rising fuel prices.

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Tags: AspasaEnoch GodongwanaGwede MntasheNico Pienaar
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Dennis Ayemba

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