Reduction in general fuel levy a welcome intervention to contain food prices

1 April 2022  

Agri SA welcomes the announcement of the temporary reduction of the general fuel levy. This is a necessary intervention to buttress the agricultural sector and consumers against the impact of rising fuel prices on the cost of food.

On 14 March 2022, Agri SA called on government to suspend the fuel levy to relieve pressure on consumers, and these announced measures will help to mitigate some of the upward pressure on food prices.

Agri SA also notes the Minister’s proposal for overdue long-term changes and will study the implications of these proposals for the sector. 

Agri SA notes that the interventions announce only extend to May 2022. It is essential that government be amenable to the expansion of these interventions depending on the conditions prevailing in the global fuel market at the end of the two-month period.

Agri SA will continue to engage our members, communities and government to ensure that we can keep South Africans adequately supplied with food in these uncertain and difficult economic times.

Issued by Kulani Siweya, Chief Economist, AgriSA, 1 April 2022