With the price of fuel set to reach record highs in March, South Africa’s finance minister has announced a first step which could see the price of petrol drop in the country.
Finance Minister Enoch Godongwana has announced that both himself and Minister of Mineral Resources and Energy Gwede Mantashe have agreed that all aspects of the fuel price need to be reviewed.
The minister announced that teams from the relevant departments have begun engagement around what he describes as critical work.
The Automobile Association (AA) of South Africa estimates for every litre of petrol sold in the country, as much as R6.11 are for various levies.
Godongwana also announced that there will be no increases made to the general fuel levy on petrol and diesel for the 2022/23 financial year. This will save consumers an estimated R3.5 billion.
There will also be no increases to the Road Accident Fund Levy.
The cost of petrol is considered an inflationary pressure. Therefore if the cost of petrol rises, it could lead to higher costs in transport, food, manufacture of goods and services.
The AA has called the announcements made by Godongwana a ‘landmark win for consumers.
“This is a landmark win for all consumers – not only motorists – and while fuel prices may still increase, the additional burden of higher taxes is now out of the way. We are naturally extremely happy that our calls have been heeded,” declared the AA.
They also welcomed the announcement of the engagement between Minister Godongwana and Minister Mantashe on reviewing the fuel price. This comes after the organisation’s online petition under the hashtag #ReviewTheFuel garnered more than 35 000 signatures which demonstrates the will of consumers to have the price of fuel reviewed.