Finance minister Enoch Godongwana called for changes to the way the fuel price is calculated, after the cost of petrol rose to a record this month.
Regulated fuel prices, which include a levy used to finance a fund to compensate those involved in road accidents and other taxes, have jumped 40% this year. The price increased 3.8% last week to R20.29 per litre in Gauteng, the commercial hub.
Godongwana is concerned about the increase in fuel costs “to the extent that we may have to play a role, to do whatever we can, to support the reform of the fuel price”, he told lawmakers on Friday in parliament in Cape Town. Data due out on December 15 is expected to show headline inflation accelerated to 5.5% in November from 5% in October, driven by fuel and food costs. The price-growth measure has been above the 4.5% midpoint of the central bank’s target range at which it prefers to anchor expectations since May.
Energy minister Gwede Mantashe told lawmakers that separating the fuel levy from prices would be “helpful”. “At this point in time a big part of the price increases is the levy,” he said. “The way of countering price increases is an urgent matter for review and that is on the table.”
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Godongwana calls for fuel price reformsSA's finance minister has called for changes to the way the fuel price is calculated, after the cost of petrol rose to a record this month.
Read more »
Audio recordings reveal how pastor and wife plotted murder for insurance payoutsIn a recorded telephone call with a South African life insurer, Pastor Melisizwe Monqo of God's Work International Ministries in the Eastern Cape can be heard impersonating the boyfriend of Hlompho Koloi
Read more »
Asian markets creep up on brighter Omicron outlookThe release of US inflation data and the prospect of Fed rate hikes tempered the rally
Read more »
GUGU LOURIE: Tyme to globalise with Tencent and CDC backingBank seems to be preparing for aggressive global expansion after securing financing
Read more »
WATCH: Gauteng budget grows by R7bn, with focus on growth and recoveryBusiness Day TV talks to Gauteng MEC for finance and e-government Nomantu Nkomo-Ralehoko
Read more »
Want to know where your money’s going? It’s easy to keep track with this free toolSPONSORED | Nedbank’s MoneyTracker will help you make the most of your finances, whether business or personal.
Read more »