Government doing its best to provide some relief amid sky rocketing fuel prices: Treasury

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Treasury’s Deputy Director-General Ismail Momoniat says government is doing its best to provide some relief to the public from sky rocketing fuel prices.

Government has announced the continued exemption of the R1.50 fuel levy from the petrol price.

The move will be placed before the National Assembly.

The petrol price increases by as much as R2.43 at midnight and the diesel price by up to R1.10.

Wholesale illuminating paraffin increases by R1.56 a litre.

Momoniat says it’s hard to shield the public from fuel price hikes.

“It will bring some relief, but it’s not possible to protect households from these strong global forces, which get driven by the price of Brent crude oil, and of course rand/dollar exchange. There are fuel taxes as well. So those things can drive the price [up]. There’s good reason to have a fuel levy, good sort of public interest reasons,” explains Momoniat.

The video below discusses the impact of the high fuel increase:

Meanwhile, the Organisation Undoing Tax Abuse (Outa) has welcomed the latest fuel price reprieve by government, saying poor people are bearing the brunt of rocketing prices.

The Mineral Resources and Energy Minister Gwede Mantashe and Finance Minister Enoch Godongwana announced jointly that they will approach the National Assembly for an extension of the reduction in the general fuel levy until the 2nd August 2022.

Outa’s executive director of accountability, Stefanie Fick says the petrol price has become a big issue in South Africa.

“The impact it has on the less fortunate is even worse. Because we all know, the minute the petrol price goes up, transport costs go up. If transport costs go up, what we pay for food and all the essential stuff, it all goes up.”

Outa’s Stefanie Fick on fuel levy reprieve: