Parly committee calls for long-term fix to soften the blow of fuel price hikes
Parliament's Portfolio Committee on Mineral Resources and Energy has called on the government to undertake a "comprehensive review" of South Africa's fuel pricing regime.
This comes after the National Treasury stepped in to provide relief to South African motorists ahead of this week's fuel price adjustment by extending a cut to the general fuel levy of R1.50 per litre.
While there was still a R2.43 hike to the price of fuel on Wednesday, the price would have been hiked by almost R4 without the extension. The relief is set to last from the beginning of June to early July, after which the adjustment will be dialled back to 75 cents per litre until early August.
Portfolio Committee on Mineral Resources and Energy chair Sahlulele Luzipo said in a statement that with the government's relief expected to be withdrawn in two months, a sustainable plan should be developed for long-term relief.
"We need to ask ourselves a pertinent question as to what will happen after two months when the fuel price is still high. A piecemeal review is unsustainable, in our view," said Luzipo.
Luzipo suggested that the government should consider placing domestic taxes "elsewhere", other than on the general fuel price.
So far, the government has scrapped a levy of 10c per litre that has been applied to inland 95-octane unleaded petrol, and it has also proposed that the basic fuel price be decreased by 3c per litre in the coming months.
According the the Department of Mineral Resources and Energy and the National Treasury, the extension to the cut in the general fuel levy caused the government to forego an estimated R4.5-billion in revenue.
On Wednesday, diesel prices rose by R1.10 per and paraffin rose by R1.56.
Comments
Research Reports
Latest Multimedia
Showroom
For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...
VISIT SHOWROOM
AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
