The SA Petroleum Industry Association (Sapia) expects the government to this week announce whether the short-term relief measures to alleviate fuel price increases will be made permanent as motorists brace for a possible R4/l increase in petrol prices in June.

Sapia executive director Avhapfani Tshifularo said on Monday: “We hear there are discussions, but the official version is that there is not going to be an extension. That is subject to an announcement which should come later today [Monday] or tomorrow.”

In April and May, the government cut the general fuel levy by R1.50/l as part of a “two-phase approach” to shield motorists from rising fuel costs. The measures were funded by the liquidation of a portion of the strategic crude oil reserves.

Sapia said it had been engaging in discussions with the government on the second phase.

Sapia head of projects Kevin Baart said given the steep fuel prices projected in future, “unfortunately we will have to bite the bullet”.

“There is very little the government can do, particularly around the edges, which may see one or two cents a litre being chopped off the price.”

The rising petrol price has driven inflation forecasts higher, with some economists expecting it to peak above 7% in June.

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