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Government to work on creative ways to battle incoming fuel price hikes

Government to work on creative ways to battle incoming fuel price hikes

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Government to work on creative ways to battle incoming fuel price hikes—

Government is said to be working on creative ways to battle incoming fuel price hikes, such as decreasing fuel levies and the rationing of fuel to the public.

The Auto Mobile Association (AA) warned of crippling fuel prices which are predicted to soar even higher in April.

According to data published by the Central Energy Fund (CEF) on Tuesday, projections point to an over recovery of between 35 and 36 cents in the price of petrol and 37 cents for illuminating paraffin..

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Minerals and Energy Minister Gwede Mantashe said there are various ways to help alleviate the high fuel prices.

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The Minerals and Energy Department is now looking at decreasing the fuel levy and other taxes give motorists some reprieve.

The general fuel levy currently stands at R3.85 per litre for petrol and R3.70 per litre for diesel while the Road Accident Fund (RAF) levy is currently at R2.18 per litre for petrol and diesel.

Mantashe during a portfolio briefing in Parliament on Tuesday said he is talking to Finance Minister Enoch Godongwana about the reduction on taxes on fuel.

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“Taxes constitute 36% of the price at the pump. Would it work if it was suspended for a period? What would the impact be on the fiscus? Is it possible to remove the 10c per litre demand-side management levy on unleaded 95 or place a price cap on unleaded 93? Is it possible to avail part of the strategic stocks to local refiners? These discussions are under way.”

Meanwhile, the Energy Department said South Africans may need to ration their fuel as a result of Russia’s war in Ukraine.

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It said fuel prices globally and indeed nationally have reached unsustainable levels while in South Africa’s fuel prices has reached record levels.

More Gist >> HypeGist.

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