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Image: OUTA
Fuel
levy relief extended, but government must use this pressure to fix spending
failures
OUTA welcomes May fuel levy reprieve while calling for stronger fiscal discipline, urgent waste reduction, and transparency on South Africa’s strategic fuel reserves
- OUTA welcomes government’s extension of fuel levy relief for May
- Continued relief offers important support to consumers and businesses under pressure
- Fiscal strain should drive spending reform, waste reduction, and stronger budget discipline
- Government must urgently improve transparency around South Africa’s strategic oil reserves
The Organisation Undoing Tax Abuse (OUTA) welcomes Finance Minister Enoch Godongwana’s decision to retain fuel levy relief for May, providing much-needed short-term support to South Africans facing sustained financial pressure. While this decision adds strain to the national fiscus, it offers critical relief to households, businesses, and the broader economy as fuel costs continue to place pressure on living expenses, transport costs, and inflation.
“Government’s decision to extend this relief is both necessary and welcome, but it must also serve as a wake-up call,” says Wayne Duvenage, OUTA CEO. “South Africa cannot continue managing fiscal pressure through temporary interventions alone. This moment should force government to intensify efforts to eliminate wasteful expenditure, cut unnecessary projects, and improve overall public spending discipline.” OUTA believes periods of fiscal pressure should act as catalysts for meaningful reform, creating urgency around stronger governance, improved budget efficiency, and more accountable financial management.
The organisation further calls on government to urgently improve transparency regarding South Africa’s strategic oil reserves. The public deserves clarity on reserve levels, management strategies, and the rationale behind decisions not to release reserves into the market, particularly when such intervention could help reduce pressure on consumers and businesses.
“Greater transparency around strategic fuel reserves is essential,” says Duvenage. “South Africans deserve to know what resources are available, how they are being managed, and whether these assets could play a more effective role in cushioning the country against fuel price shocks.”
OUTA maintains that while fuel levy relief is an important intervention, long-term resilience will depend on government’s willingness to confront deeper structural failures in public finance, improve spending priorities, and strengthen transparency across critical national resources.
Supporting Information
A soundclip from OUTA CEO, Wayne Duvenage is available here.
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