Finance and Economic Development Minister Mthuli Ncube said Government will increase Excise Duty by 7 cents per litre on diesel & paraffin and 6.5 cents on petrol to reduce the arbitrage opportunities.
He said the increase will take effect from 1 December this year. Said Ncube:
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This arbitrage opportunity has partly contributed to the increase in consumption of fuel products, with volumes for the period January to October 2018, amounting to US$1.29 billion. The increase in consumption is clearly unsustainable, considering that the available foreign currency reserves have to be shared among other critical priorities. I, therefore, propose to increase excise duty by 7 cents per litre on diesel and paraffin and 6.5 cents on petrol to reduce the arbitrage opportunities. This measure takes effect from 1 December 2018.