DURBAN - The AA has welcomed the extension of the reduction of the general fuel levy for another two months.
It was announced by the Ministers of Finance and Mineral Resources and Energy along with the fuel price announcements. The levy will be R1.50 less in June and 75c less in July. In August, it will return to its normal rate of R3.93.
The price of different grades of petrol (93 and 95 unleaded) have increased by R2.43 a litre and R2.33 a litre, respectively. All grades of diesel have increased by between R1.07 and R1.10 a litre.
Layton Beard, the spokesperson for the AA said: “The joint announcement is a welcome development, and we are sure consumers are grateful that the government has stepped in with this financial reprieve. Even so, the adjusted fuel prices still take the fuel price to record highs, and consumers will have no option but to tighten their belts to accommodate for these significant price jumps.”
Beard said that apart from the immediate relief, the AA acknowledges that the government has limited options in dealing with a crisis that is affecting countries around the world, not only South Africa.
“The price increase to 95 ULP will push the price of this fuel to R24.17/litre, and the price of 93 ULP to R23.94/litre. The wholesale price of diesel in Gauteng will increase to around R23.06/litre.”
Beard added that as the government noted, these increases are being driven by the conflict in Ukraine (and the sanctions against Russia), supply-chain bottlenecks, and a tightening of the global monetary policy.
“The increases are significant and will hurt all consumers and they will undoubtedly exert inflationary pressure on the economy.”
Beard said that the AA also welcomed the government’s plans to implement further measures to help reduce fuel prices in a more sustainable manner.
“The temporary relief is exactly that: temporary, and it’s now apparent that the government must find longer-lasting solutions to mitigate rising fuel costs. Government must now initiate a review of the fuel price: to examine all the components that comprise a litre of fuel, establish their continued relevance as part of the fuel price, and to determine if the calculations used are still correct. Such a review is long overdue and the longer government delays in getting this started, the longer it will take to find sustainable solutions.”
THE MERCURY