The Democratic Alliance (DA) says it has unsuccessfully lobbied the government to review the current fuel pricing policy, arguing that the steadily increasing prices are hurting the economy.
“We have requested this review many times, along with other parties, but we have been ignored,” said Kevin Mileham, DA shadow Minister for Mineral Resources and Energy.
According to Mileham, a review of the fuel price system in South Africa is long overdue, saying Minister Mantashe has been delinquent in his duties, failing to take action.
He said the recent upward revision of fuel prices by the Department of Energy will likely put a significant strain on the economy and the commuting public.
“The Road Accident Fund Levy is not only one of the major components of the price of petrol per litre, but its poor administration has unwittingly led to a R300 billion funding deficit,” says Mileham.
According to Mileham, it has become increasingly clear that various fuel taxes, such as the Road Accident Fund (RAF) Levy, are driving up fuel prices, which now stand at all-time record highs.
He said an investigation by the department into the reform of the fuel tax system could be the first step toward reducing fuel prices.
Mileham said the current fuel pricing model is killing South African consumers.
The increase in fuel prices took effect on Wednesday, December 1, according to the department.
Petrol 93, 81 cents per litre increase; Diesel 0.05%, 73 cents per litre increase; Diesel 0.005%, 75 cents per litre increase; and Illuminating Paraffin, 42 cents per litre increase.
The hike in prices is due primarily to weak rand and higher oil prices during the period under review.
Mileham said South Africans are simply unable to afford the fuel hike after years of economic decline due to ANC mismanagement, corruption, and looting, and the harshest COVID-19 locking downs, which is crippling the country’s economy.