By Thys Khiba – The Democratic Alliance (DA) confirmed that they are pushingto introduce legislation to protect South African motorists andconsumers against fuel prices.
This follows the announcement in March, by finance minister Enoch Gondongwana, of a temporary reduction of the general fuel levy by R1.50 cents per litre, for the period 6 April 2022 to 31 May 2022.
Gondongwana indicated that the reduction of the general fuel levy would be funded by the liquidation of a portion of the South Africa’s strategic crude oil reserves.
The DA predicts that motorists are likely to face a hefty hike in petrol and diesel prices in June as the government’s General Fuel Levy intervention is expected to come to an end before June 2022.
“With Finance Minister Enoch Gondongwana’s temporary tax relief of R1.50 set to expire at the end of the month, South Africans might have to pay an increase of more than R3 per litre for fuel and as much as R25 per litre of fuel from the beginning of June,” said shadow minister of mineral resources and energy, Kevin Mileham.
“In this instance, the revenue foregone by the reduction in the levies will be recouped through a sale of strategic crude oil reserves, which are held by the Strategic Fuel Fund, which is a subsidiary of the Central Energy Fund. The sale would be required to raise around R6 billion,” said Gondongwana.
The DA Mileham continued to say not only will transport prices increase, but food and other basic necessities will also become more expensive yet again.
The party wants to introduce a Private Members Bill (PMB) ‘to codify, through legislation, the deregulation of the fuel price to encourage competition between wholesalers and retailers.’
“The PMB will seek to protect the consumer from exorbitant price increases by decoupling the basic fuel price from government taxes and levies and additional margins used by wholesalers and retailers,” said Mileham.
Gondongwana indicated in Parliament, that a broader package of relief measures would be explored, “and they will come into effect after the expiry of the two-month fuel levy reduction”.
“We are doing all of these things in line with our overall commitment to keeping money in the pockets of South Africans during these trying times, while at the same time restoring the health of our public finances,” said Gondongwana.
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