Finance Minister Enoch Godongwana has told Parliament he is considering extending the temporary R3 per litre fuel levy cut beyond the end of April as South Africans brace for another steep fuel price increases in May.

Godongwana indicated he would announce his decision by Tuesday 28 April after consulting with Mineral and Petroleum Resources Minister Gwede Mantashe.

Government implemented the temporary R3 per litre reduction in the fuel levy from 1 April, but the relief measure is set to expire on 5 May.

Godongwana responsed to calls in the National Assembly for extended fuel relief amid the ongoing conflict involving the US, Israel and Iran, which has driven international oil prices sharply higher.

Brent crude oil, the global benchmark for oil pricing, was trading at around $103 per barrel on Wednesday, up from levels below $80 earlier this year.

According to the latest data from the Central Energy Fund, petrol prices could increase by over R2 per litre in May, whilst diesel prices face a steep increase of between R7 and R8,50 per litre.

Mid-month projections indicated petrol 93 could rise by 243 cents per litre and petrol 95 by 280 cents per litre. Diesel 0,05% is expected to increase by 851 cents per litre and diesel 0,005% by 853 cents per litre.

ALSO READ: FUEL PRICE CRISIS | The great fuel buffer

However, these increases would be in addition to the R3 levy if government allows the temporary cut to lapse. If Godongwana extends the relief, the effective increases would be R3 per litre lower across all fuels.

ALSO READ: Fuel levy to be cut by R3 per litre, but the pain is yet to come

The projected increases are driven by surging international oil prices linked to tensions in the Middle East, particularly concerns over potential disruptions to oil supply through the Strait of Hormuz. The rand, trading at around R16,53 to the dollar, has also contributed to the pressure on local fuel prices.

Current inland petrol prices stand at R23,25 per litre for 93 octane and R23,36 for 95 octane. Diesel 0,05% is priced at R25,90 per litre and diesel 0,005% at R26,11 per litre.

Without an extension of the levy cut, petrol 95 could reach around R29,16 per litre inland in May, whilst diesel 0,005% could climb to R37,64 per litre.

The sharp diesel price increases are expected to have significant knock-on effects on logistics costs, food prices and overall inflation.

ALSO READ: Ramaphosa forms task team to tackle looming 50% fuel price surge