South African government eases sharp rise in fuel prices by introducing a tax that protects consumers, says a news piece shown by Mozambique Television.

According to the source, if the measure were not adopted, gasoline, for example, would cost, as of this Wednesday, a little more than one hundred meticais a liter.

The government explains that this decision to reduce the fuel tax for two months aims to protect consumers from sharp fuel price increases and a cost of living crisis, but also to introduce measures to permanently reduce prices at the pumps and promote competition in the fuel sector.

This relief tax is a form of tax that is inserted into the distribution price of gasoline and diesel at the pumps and is paid to the government.

If the government had not acted, consumers would have been hit with gasoline price increases of up to 16 meticais a liter starting this Wednesday, which would also cause increases in food and transportation prices.

The new prices were not more than half of what was expected, meaning that gasoline, the most expensive fuel, now costs 93,000 meticais a liter.

Overall, the already unbearable inflation environment would have worsened for consumers. It should be noted that like Mozambique, South Africa depends on international markets for fuel supplies.

Source: TVM