Minister Warns Of Looming Fuel Price Increase

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South African motorists should prepare themselves for more pain at the pumps after the minister of Mineral Resources and Energy revealed that a price hike is unavoidable.

 


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Mineral Resources and Energy Minister, Gwede Mantashe says that while the government has introduced measures to protect motorists from the high price of fuel, further increases are unavoidable.

“Due to global events pushing oil prices above the US $100 per barrel and high US interest rates, fuel prices are set to rise again,” warned Mantashe.

In April, Finance Minister Enoch Godongwana announced a R1.50c reduction to the general fuel levy. This saved motorist's from adding this at the fuel pump. However, this relief is only temporary and as it stands, it will come to an end in May 2022. 

The Automobile Association (AA) has warned that the price of petrol could increase by more than R3 per litre in June as relief measures come to an end. The price of diesel is also set to go up by between R1.60 and R1.62 a litre.

The AA’s Layton Beard says that while the cut of the general fuel levy provided relief for motorists, up to R6.11c of every litre of fuel sold is tax.

He says that the government has made several proposals to help cushion the blow for motorists including the reduction of some of the smaller levies.

Automobile Association's Layton Beard said:

We maintain that a complete review of the fuel price is still necessary and we are eager to have something like that get off the ground sooner rather than later 

Beard says the components that make up the fuel price need to be reviewed are all the components necessary but says it is a waiting game when it comes to seeing what relief measures may be introduced by the government.

 

 

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