Fuel: Welcome relief, but only deferred pain

Dr. Wynand Boshoff. (Photo: Archive)

The FF Plus welcomes the concession to lower the fuel levy by R3 per liter for one month, but dr. Wynand Boshoff, FF Plus’ chief spokesperson on mineral and petroleum resources, says it is short-lived.

“This eases the pain for a handful of motorists, but the lost tax will have to be recovered from motorists later.”

The price of diesel rose at midnight on Tuesday by R7.51 per litre, the steepest rise yet, even despite the R3 reduction in the fuel levy that was granted shortly before.

The price of all grades of petrol rises at the same time by R3.06 per litre.

Boshoff says in a recent parliamentary question, the FF Plus wanted to know from the minister what fiscal interventions are possible to mitigate the increase in fuel prices. This is against the backdrop of the fact that the newly approved fiscal framework leaves very little room for maneuver. “It precisely included an increase in the fuel levy. In his statement, the minister made it clear that the concession only applies for one month.”

The FF Plus hopes together with the minister that international fluctuations which led to the increase in crude oil prices will return to normal in that month. If so, the revenue the government loses for the month can be recovered without raising fuel prices again. After that, price fixing can return to normal.

Boshoff says the current crisis underlines South Africa’s dependence on imported fuel. “The strategic importance of Sasol, as well as sustainable electricity supply to enable electric transport, becomes very clear in such times.”