South African motorists could get some help with soaring fuel costs, but government has not yet committed to a specific intervention.
President Cyril Ramaphosa said government is considering possible measures after petrol prices climbed to nearly R30 a litre. According to The Citizen, Ramaphosa acknowledged that higher fuel costs are placing pressure on consumers and businesses.
The latest increases saw 93-octane petrol rise by R3.12 per litre and 95-octane petrol by R3.33 per litre.
Ramaphosa says fuel relief is being considered
Ramaphosa linked the sharp rise in fuel prices to the war in the Middle East and said the impact is being felt internationally.
He said government is looking at what could be done to ease the pressure but warned that any intervention would have consequences for the country’s finances.
Ramaphosa said measures aimed at reducing fuel costs could affect government reserves and the country’s fiscal position. He added that any decision would need careful consideration and could not be made immediately.
Creecy rules out higher fuel levy
Transport Minister Barbara Creecy has meanwhile ruled out asking National Treasury for an increase in the fuel levy while she remains in office.
Creecy said consumers are already under significant financial pressure and argued that the priority should instead be fixing the Road Accident Fund.
The RAF is funded through the fuel levy and has faced longstanding financial and management challenges.
Creecy said the RAF board was dissolved last year and replaced by an interim board. She added that Cabinet has approved the process of appointing a new chief executive officer.
Her department is focusing on improving the fund’s finances, management, governance and accountability.
Calls grow for temporary levy relief
The Motor Industry Staff Association has called on government to bring back a temporary reduction in the General Fuel Levy.
The association pointed to previous intervention in April, when Treasury cut the General Fuel Levy by R3 per litre and reduced the diesel levy to zero.
That temporary relief has since ended.
Motorists are currently exposed to the full levy of R4.10 per litre on petrol and R3.93 per litre on diesel.
For now, government has confirmed that options are being considered but no new fuel relief measure has been announced.
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