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Outa calls for R1.50 fuel levy reprieve extension and a relook at RAF

Motorists at an Engen garage in Plettenberg Bay. Photograph: David Ritchie/African News Agency(ANA)

Motorists at an Engen garage in Plettenberg Bay. Photograph: David Ritchie/African News Agency(ANA)

Published Jun 27, 2022

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Durban - The Organisation undoing Tax Abuse (Outa) has called on the South African government to extend the R1.50 fuel levy reprieve amid the rising fuel costs and to relook at the management of the Road Accident Fund.

With yet another fuel hike on the cards, South African citizens can expect to pay an estimated R1.75 extra a litre by July 6.

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Outa says the reprieve of R1.50, which had been in place to cushion the financial impact on consumers in April, May and June, should be extended further.

On Monday, CEO Wayne Duvenage said it would be prudent of Finance Minister Enoch Godongwana to extend the reprieve as the cost of living had increased dramatically since the start of the war between Russia and Ukraine.

The conflict has seen the price of crude oil fluctuate between $110 (about R1700) and $120 a barrel.

“We understand the cost to the government, so instead of dropping it (the reprieve) to 75c for another month, they should keep the R1.50 reprieve in place.

“Petrol is extremely expensive now and is impacting on inflation, it is impacting on commuter pricing and we really do need to see a longer-term solution but, for now, the short-term solution is the only space the government can provide some reprieve and that is in the fuel levy to motorists, to citizens and the entire transport,” Duvenage said.

Outa said the government should find a solution to the “runaway costs” of the Road Accident Fund, which was funded by a fuel levy of just over R2 a litre.

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Outa said the levy should be reduced or kept separate from the price of fuel.

Inland regions of the country pay slightly more than coastal regions, with unleaded 95 costing R23.52 on the coast and R24.17 inland.

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