Ramaphosa: Govt to RECALCULATE fuel prices – meaning costs ‘will drop soon’

President Cyril Ramaphosa added some heft to statements related to fuel pricing made by the treasury in his question and answer session in the National Assembly on Thursday, 17 March.

RAMAPHOSA SAYS FUEL PRICES WILL COME DOWN

Ramaphosa said the government is using all the levers at its disposal to try and cushion South Africans from the rising costs of living, especially in light of the Russian invasion of Ukraine, which is expected to have an effect on the global economy.

“Families across South Africa are already feeling the effects of rising prices in supermarkets, as well as at the petrol pump. Many are worried about how they will continue to provide for their families and make ends meet,” said the president.

He said the government has proposed R5,2 billion in tax relief to support South Africa’s economic recovery and keep money in taxpayers’ pockets, as Minister of Finance Enoch Godongwana said in his February budget speech.

“To address the rising cost of petrol, the minister of finance announced that no increases will be made to the general fuel levy on petrol and diesel for 2022 and 2023, to provide for some respite from rising costs that are continuing to go up,” said Ramaphosa.

He repeated Godongwana’s words about how the treasury and the Department of Mineral Resources and Energy are reviewing the methodology of the basic fuel price and other regulated components to find changes that could lead to a reduction in the cost of fuel.

Ramaphosa said the work is underway and the changes will be “implemented as soon and as quickly as possible.”

“In short, our fiscal stance will insulate public finances against the possibility of domestic and international monetary tightening while simultaneously supporting households – ordinary taxpayers – through higher allocations to pro-poor spending.

“It is important to acknowledge that the South African economy has thus far proved to be resilient to external shocks, including the turbulence linked to the conflict in the Ukraine,” said Ramaphosa.