Minister to devise plan on increases
ENERGY Minister Jeff Radebe is expected to outline a way to deal with the rising prices of fuel and the impact this has on South Africans.
The action, planned for next week, is aimed at alleviating pressure on the consumers, said Communications Minister Nomvula Mokonyane yesterday.
The National Treasury denied that a panel looking at the review of zero-rated food items would also look at the fuel prices.
The panel was set up by Finance Minister Nhlanhla Nene a few months ago after the increase in VAT from 14% to 15%.
The government has come under fire from parties and civil society after the latest increase with another fuel increase in the pipeline next month.
The ANC has also urged the government to intervene on the matter.
The DA said the government would need to clean up corruption before addressing the rising fuel prices. It said the government must reduce the Road Accident Fund fuel levy and the general fuel levy by 20%.
However, Mokonyane said the government would deal with the matter as it was a serious concern.
“Minister Radebe, having consulted, will be able to communicate a message that government is concerned, and is hard at work. It will happen in the course of next week,” said Mokonyane.
On comments by the ANC for the government to intervene, she said it would be important for the party to be informed about measures taken to deal with the situation.
“We are all ANC deployees, and we are affected by the oil price. Once Radebe comes, he will have that integrated response,” said Mokonyane, adding she would not comment on whether the fuel levy must be frozen. She said things must be processed, “and you cannot generate policy from your feet”.
Mokonyane also said that one of the contributing factors in the fuel-price increases was the exchange rate for the Brent crude oil. The South African currency has weakened recently, which had an impact on the purchase of crude oil. She said the private sector was urged not to immediately pass the cost of fuel to the consumers.
“South Africa is an oilconsuming nation and is affected by what is happening outside. The prices are determined by external factors.”
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Government has come under fire from parties and civil society