Ramaphosa vows ‘to address’ looming fuel price spike
President Cyril Ramaphosa has ordered ministers to find solutions to rising fuel prices, as petrol and diesel hikes loom, with government and opposition debating fuel levy cuts to ease pressure on South Africans.
President Cyril Ramaphosa has expressed concern at the looming fuel price hikes.
The latest data from the Central Energy Fund is pointing to a petrol increase of over R5,00 a litre, while diesel is expected to increase by more than R9,00.
The price hikes are due to take effect on Wednesday.
Speaking on the sidelines of the ANC Limpopo elective conference on Sunday, Ramaphosa said he has instructed the relevant ministers to come up with proposals on how to reduce the impact of the fuel price increases on South Africans:
“Prices of petrol going up are affecting many countries and many, many people around the world,” Ramaphosa said.
“We did not ask for this conflict. It has just descended on us, and we've been on a fairly good run, seeing the indicators getting more and more positive. So the rise of petrol is a setback for us, and we are going to address it.”
Cabinet to set up a committee
Last week, Finance Minister Enoch Godongwana said the cabinet had set up a committee to investigate whether the fuel levy would need to be cut to ease the looming fuel price spike.
Answering questions in the National Assembly, Godongwana said the government would have to consider a range of options to temper the impact of the surge in prices caused by the Middle East war.
Iran has virtually closed the vital Strait of Hormuz -- through which a fifth of global crude and gas flows -- since the United States and Israel began striking the country on February 28.
Godongwana told MPs that while fuel levy decisions remain his prerogative, he won’t exercise them alone in light of the international oil price crisis.
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DA wants fuel levy cuts
At the same time, the DA said an urgent 50% cut to fuel levies is needed to protect South Africans from steep fuel price hikes.
The party warned that the looming petrol and diesel price hikes will increase transport fares, drive up food prices and worsen inflation, hitting low-income households the hardest.
The DA’s Mark Burke says the levy cut could reduce prices by more than R3,00 per litre.
“Out of control fuel increases are not the fault of South Africans, and we need to protect household budgets. We need to give them relief. We know this will cost money.
“To pay for it, we want to take surpluses from the patronage bots that are the Compensation Fund and SETAs. We also need to strengthen our spending review and to extend ghost worker audits to local capabilities and SOEs.”
