Growing pressure for an extension of fuel levy relief
AS motorists brace for massive fuel price hikes next month, there has been growing calls for an extension to the fuel levy relief which is set to end next week.
With petrol expected to rise by between R1.93 and R1.97 a litre, diesel by between R1.60 and R1.62 a litre, and illuminating paraffin set for a whopping R2.14 a litre climb, various organisations have called for further intervention, including the scrapping of taxes on fuel.
DA Shadow Minister of Mineral Resources and Energy Kevin Mileham says any further increase to the price of fuel will 'drive up already sky-high prices of food and other essential goods, most of which are solely reliant on road freight'.
'June’s massive fuel price hike and its knock-on effects will hit the poorest the hardest at a time when they are already battling the deadly consequences of 46% unemployment, load-shedding, irrational Covid regulations, soaring global inflation driven by Russia’s invasion of Ukraine, flooding in some areas and drought in others.
'A 5.3% increase in social grants in April has already been wiped out by the 9.6% increase in electricity tariffs.
'More basic items need to be immediately zero-rated for VAT, and a broader strategy needs to be developed to stem the rising cost of living which threatens the stability of our nation,' said Mileham.
The Federation of Unions of South Africa (Fedusa) has also demanded that Finance Minister Enoch Godongwana immediately extend the emergency fuel levy intervention to cushion the blow to workers and businesses.
'This rapid increase in fuel prices will consequently have a negative impact on the economy, especially the working class, who commute daily to their workplaces.
'This is an unnecessary economic burden that workers and the country cannot afford in this current economic climate, as the country attempts to claw back to pre–pandemic levels,' Fedusa said.
While government is yet to make announcements on any further intervention measures, Energy Minister Gwede Mantashe, who delivered the department's budget vote last week, said, owing to global events pushing oil prices above US $100 per barrel and high US interest rates, 'fuel prices are set to rise again'.