Enoch Godongwana's R1.50 cut to the fuel levy is a welcome reprieve, but SA needs a wider investigation into how petrol prices are made up.
The government’s move to soften the impact of sky-high oil prices is vital — but it hasn’t gone far enough.
Over the past year, for example, SA’s fuel prices have risen by an annual average of 25% which, when combined with the 11% hike in electricity prices, has pushed “administered prices” — set by the government — up by 14% over the past year. As it is, general fuel levies provide up to 6% of all tax revenue collected in SA. But these levies have risen 121% over the past decade — far faster than the 63% rise in the wider inflation index. Another tax you pay every time you buy petrol is a levy for the Road Accident Fund, and this has also risen 173% over 10 years.
Bohlmann and Crompton warned that specific concerns — a desire to protect jobs in the fuel sector and promote small businesses — were preventing a shift to more competitive market pricing. But they stressed it would be important to shift petrol price regulation to an independent regulator, or commission, rather than the government.
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.
ENOCH MGIJIMA MUNICIPALITY: Eastern Cape town of Sterkstroom has been in darkness for two weeksPeople and businesses in Sterkstroom in the Enoch Mgijima Local Municipality have been without electricity for 17 days.
Read more »
Mangaung and Enoch Mgijima municipalities placed under administrationMinister in the Presidency Mondli Gungubele said both municipalities had experienced significant financial and service delivery failures for a prolonged period.
Read more »
South Africans pay more for fuel - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.The petrol price has increased but thanks to the government’s decision to cut the fuel levy, motorists will not deal with large fuel price increases. FuelPriceHike PetrolPrice
Read more »
Petrol will still cost you more from Wednesday despite reduced fuel levyDespite a fuel price cushion from the government, fuel will still cost you more from Wednesday morning.
Read more »
Permanent fuel price solutions needed, for SA to avoid a disasterFuel price hikes have led to massive food price spikes, while more consumers are seeking debt relief, and things look set to get even worse.
Read more »
DA asks why Nersa has not held hearings with the public over power price hikesConsumers are struggling to keep the lights on, yet Nersa thinks it is unimportant to canvass their views on another tariff hike, the DA says
Read more »