Johannesburg - The DA has called for the scrapping of taxes and levies on fuel following the past week’s petrol price increase.
This was despite government softening the blow for consumers by extending the R1.50 temporary reduction in the general levy on each litre of fuel from June 1 to July 6, to avoid an increase of close to R4 a litre, which would have pushed the fuel price above R25.
The cost of 93-grade unleaded petrol has increased by R2.43 a litre, while 95-grade has gone up by R2.33 a litre.
Diesel will cost up to 1.10 a litre more, while the price of illuminating paraffin rose by R1.56 a litre.
DA MP Kevin Mileham, the party’ spokesperson on mineral resources and energy, said the extension of the R1.50 relief showed how the fuel levy was absolutely flexible, unnecessary and abusable. Mileham said it was also little more than a sideshow, designed to distract from the highest increase in history.
The costs of levies and surcharges total R10 a litre of petrol before the basic fuel price is added.
– Fuel levy: R3.93
– Road Accident Fund Levy: R2.18
– Retail and wholesome margins: R2.74
– Storage and distribution: R1.14
–Total: R9.99
Mileham called on government to.
– Scrap the fuel levy entirely, saving R3.93 a litre;
– Allow drivers out of the unnecessary R2.18 Road Accident Fund levy; and,
– Deregulate the fuel price immediately so that competition can drive down prices
Mileham’s call was echoed by the party’s federal interim youth leader, Nicholas Nyati, who said fuel price increases have long-lasting effects on people on the ground, particularly young job seekers who use public transport to seek opportunities.
Nyati said the increase also put further pressure on those who have to put food on the table for their families, when they are forced to spend an even bigger chunk of their income on public transport.
“The ANC government is simply incapable and unwilling to address the socio-economic challenges that contribute to the staggering number of unemployed, and if statements by the Cabinet are anything to go by, these glow-in-the-dark flagsters have all the signs of a failed liberation movement leading us towards a failed state.
“The continued fuel price increases are further proof that we do not have a leadership problem but an ANC problem. The ANC is more concerned about where to loot next, than the citizens they govern,” said Nyati.
Meanwhile, Congress of the People spokesperson Dennis Bloem also weighed in on the increases, saying the consequence of the crisis that the country is facing would worsen, as many will lose jobs, which will lead to an increase in the crime rate.
“Government must think very hard about the negative impact these fuel increases will have on workers who are using public transport to their places of work. We can expect that fares of public transport will rise. Motorists and everybody will feel the pain of the fuel increase,” said Bloem.