As the country reels with the news of another fuel price hike, the Build One South Africa (Bosa) leader has reiterated the need for government intervention in reducing fuel levies.
The recent increased prices follow the massive price hike that was announced in September.
An official statement shared by the Department of Energy and Mineral Resources (DMRE) stated that petrol prices were to rise by R1.08 (for 93 unleaded) to R1.14 (for 95 unleaded) yesterday, while diesel prices will rise by R1.93 (low-sulphur 50 ppm) to R1.96 500 ppm).
Maimane took to X to weigh in on the increased prices, suggesting that the government needs to look at reducing fuel levies further, saying the fuel prices were killing the economy.
“Fuel price hikes are killing this economy. This government needs to look at reducing fuel levies.
“The general fuel levy (GFL) was R3.96 in May, which represents 17% of every litre of petrol sold in South Africa. The RAF levy was at R2.18 a litre, representing around 11% of every litre of fuel sold. The minister of finance can reduce these levies.
“South Africans need relief. This economy needs relief. The cost of fuel is driving inflation. It is time to reduce the GFL and grow the South African economy.
“The government needs to cut down on its wasteful expenditures. Government officials need to tighten their budgets. South Africans have been doing that since the pandemic. Meet the people half way.There are other ways to save money in this economy without punishing the people,” he said.
He has also been vocal about the cost of living and the economy, proposing that the Reserve Bank reduce interest rates to relieve struggling households.
This follows the announcement that the Reserve Bank has kept the repo rate at 8.25% for a second time.
Maimane said it was now time to reduce interest rates as the economy was stagnant.
“South Africans are using 65% of their net income to service debt; 76% of South Africans run out of money before the end of the month. Families are losing homes and cars, and kids are being kicked out of school. We cannot continue with austerity in a no-growth economy,” he said.
Reserve Bank Governor Lesetja Kganyago said global monetary risks to the inflation outlook were assessed to the upside.
Kganyago said at a global level, headline inflation continued to moderate, but food price inflation remained high, oil markets have tightened significantly, and core inflation looked sticky.
Maimane said the MPC should have reduced the interest rate by at least 25 basis points to provide some respite to struggling households, given that inflation had largely stabilised at 4.8% year-on-year.