The Organization Undoing Tax Abuse (Outa) applauded the government’s recent fuel price relief, claiming that impoverished people are suffering the burden of skyrocketing prices.
Gwede Mantashe, Minister of Mineral Resources and Energy, and Enoch Godongwana, Minister of Finance, have announced that they will jointly approach the National Assembly to extend the reduction in the general fuel charge until August 2, 2022.
The action lowered the petrol price increase to between R2.33 and R2.43 per litre, which is still a significant increase.
The price of diesel might rise by as much as R1.10 cents per litre.
The wholesale price of paraffin will rise by R1.56 cents per litre.
Outa’s executive director of accountability, Stefanie Fick says the petrol price has become a big issue in South Africa.
“The impact it has on the less fortunate is even worse. Because we all know, the minute the petrol price goes up, transport costs go up. If transport costs go up, what we pay for food and all the essential stuff, it all goes up.”
“Our economy is not what it is supposed to be, we have an unemployment rate that is sky-rocketing. We are struggling with the oil prices going up, [fuel price reprieve] it is good news,” explains Fick.
Outa’s Stefanie Fick on fuel levy reprieve:
Meanwhile, economists say consumers will still face very steep fuel price hikes despite government’s efforts to cushion the price rises.
Economist Azar Jammine says, “To pay an extra R2.43 extra per litre for petrol and over R1 extra on diesel, we are still talking about paying five to 10 percent more for our fuel consumption.”
“It is still a hefty increase and it’s just physiologically now having cramped everyone to expect an increase of closer to R4 a litre. R2.43 increase on petrol doesn’t sound quite as bad but any historical standards, it still remains one of the biggest increases we have ever had,” adds Jammine.
Fuel stations pack up as petrol price increases:
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