Economist Kulani Siweya says a number of sectors would welcome a possible move by the government to suspend fuel levies amid increases in international oil prices.
In a Parliament briefing, Energy Minister Gwede Mantashe announced that South Africa must find ways of minimising the impact of rising fuel prices on the economy.
International oil prices have been fluctuating over the past three weeks due to Russia’s invasion of Ukraine.
Escalating fuel prices set to soar higher oil prices continue to climb [ 10 March 2022]
Ordinary citizens are negatively: Siweya
Siweya says ordinary citizens are negatively impacted by rising fuel costs.
“We would definitely welcome it as a sector. We are looking at the global situation that is playing out right now which is out of the government’s control and we don’t know how far it might go. At the same time, when that plays out, it has an impact on many factors such as food prices. Russia is a top producer of oil and fertiliser and these are important inputs for farmers. So, the production of food will become expensive. We will also see retailers marking up (prices) due to the costs of transport escalating in this situation. So, we definitely welcome it as a sector and look forward to the government’s move on this one,” says Siweya.
Fuel price increase
The Department of Mineral Resources and Energy announced in February that both 93 and 95 petrol would increase by R1.46 a litre from 1 March.
Diesel increased by R1.48 per litre and illuminating paraffin by R1.28 a litre. Liquefied Petroleum Gas (LP Gas) retail price will now cost 70 cents per kilogram.
The department attributed the increases to higher international oil prices and a weaker rand.
Motorists react to the price increase:
MISA wants to be included in reviewing fuel price methodology
Meanwhile, the Motor Industry Staff Association, a registered trade union for employees in the retail motor industry, has asked the government to include it when reviewing the fuel pricing methodology in South Africa.
The organisation says it is concerned about the increasing price of petrol and wants clarity.
Spokesperson Sonja Carstens says the fuel price hikes are affecting their members:
