Govt needs to clarify fuel hike decision, says AA
The Automobile Association (AA) wants government to clarify the manner in which fuel price levies are allocated and managed.
The association’s Layton Beard says while the slate levy has ballooned to R1.6 billion, it seems insufficient to reduce the deficit and protect users from increases in fuel prices.
Beard was commenting on the latest fuel increase announced by the Department of Mineral Resources and Energy on Tuesday.
Diesel will rise by R1.48 a litre in November, while illuminating paraffin is set to jump by a staggering R1.45 a litre and petrol by R1.21 a litre.
Beard says the decisions that lead to fuel price increases must be relooked.
“The fuel price has a direct bearing on an already weak economy as it continues to drive up inflation on essential consumer goods and affects every South African. As we have said many times in the past, all the elements that comprise the fuel must be fully interrogated to determine if they are necessary. Given that the fuel prices are now at record highs, such a review is overdue.”
Beard says the increase is another setback for already under-pressure consumers.
“More pain is being added by refining margins reaching their highest levels since 2017. And these are just the external factors over which South Africa has no control. Another contributor to the price hikes has been the ongoing slide in the Rand, which added around 15 cents to the increase."
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