Gwede Mantashe, the Minister of Mineral and Petroleum Resources, says petrol and diesel should cost only R14 per litre.
He’s talking to the National Treasury about possibly making this happen.
“The price of fuel is part of the cost of living. When the fuel price goes up, the cost of living in South Africa increases. This is not good for society,” Mantashe said at a conference.
Fuel prices in South Africa have fallen for five months in a row, but Mantashe thinks they can fall even further.
Unleaded 93 petrol costs R20.73 a litre, and diesel 500ppm is R18.45 a litre.
Mantashe wants to remove some taxes from fuel prices, which add over R6 to each litre.
“Let’s find a formula to separate the price of fuel and the levies. Let’s make it visible,” he said.
This is part of the government’s plan to fight poverty and high living costs, which President
Cyril Ramaphosa emphasised in July.
However, removing fuel taxes could require the government to raise other taxes to compensate for the lost revenue.
Mantashe says his department is working fast on this plan because they believe cheaper energy is important for growing the economy, creating jobs, and reducing poverty.
Compiled by Staff Writer
Pictured above: Fuel pump.
Source: Stock
