Fuel levies not going anywhere, says government
The government has dismissed suggestions by political parties to cut or freeze the fuel levy to ease the pressure on cash-strapped consumers.
Briefing the media in Pretoria on Friday, Energy Minsiter Jeff Radebe said it is simply not possible for government to do so.
“Government wishes to remind all stakeholders that all economies of our size that do not produce oil, levy a tax on fuel as one of the most efficient instruments of raising revenue for governments worldwide, including South Africa."
Instead government is looking at possibly adding to the list of items zero-rated on value-added tax.
“On 5 July 2018, President Cyril Ramaphosa convened a special meeting of the ministers in the economic cluster to discuss the current fuel prices and deliberate on interventions that government can make.
“The meeting resolved that the mandate of the VAT commission could be expanded to include the fuel price issues,” Radebe added.
The price of petrol hit record highs with the most recent hike, breaching the R16 a litre mark for the first time in Gauteng.
Another hike is expected in August.