AA urges finance minister not to increase fuel levies as SA’s economy reels

Petrol prices are set to increase next month. PICTURE: KIM LUDBROOK

Petrol prices are set to increase next month. PICTURE: KIM LUDBROOK

Published Jan 26, 2023


Durban — The Automobile Association (AA) of South Africa has called on Finance Minister Enoch Godongwana not to increase the fuel levies when he delivers his Budget speech in February 2023.

Petrol prices are set to increase – unleaded 95 by 52 cents a litre and unleaded 93 by 57 cents a litre.

The price of diesel is set to go up from between 22 cents and 33 cents a litre while paraffin is expected to increase by 38 cents a litre.

The AA said that in 2022, Godongwana heeded the AA’s calls not to increase the two main levies attached to the petrol and diesel prices: the General Fuel Levy and the Road Accident Fund levy.

The AA has again urged Godongwana to follow the same route and consider the implications the increased taxes would have of citizens.

“Consumers can simply not afford any more price shocks and considering the impending 18.65% increase to electricity rates, an increase to the levies will deal a massive blow to personal finances,” the AA said.

The AA collected data from the Central Energy Fund and, through the report, it highlighted the financial strain that South Africans were set to experience.

“The data is showing that price increases to international petroleum products are the main driver behind this expected increase to local fuel prices, while the strength of the rand against the US dollar is limiting these increases by between 10 cents and 14 cents on all fuels,” the AA said.

“Any increases to fuel prices now, at a time when South Africans are grappling with, among other issues, financial pressures and rolling blackouts, is unwelcome. We again want to urge the government to revisit the fuel pricing structure with a view to finding ways to mitigate against this and other possible increases in future.”

The AA said the minister needed to consider the impact that increasing the levies would have on goods and services, and that millions of South Africans would suffer.

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