The Post

Petition to review fuel prices

NADIA KHAN nadia.khan@inl.co.za

THE Automobile Association of South Africa (AA) is hoping its #ReviewTheFuel petition garners enough signatures ahead of this year’s budget speech.

Enoch Godongwana, the minister of finance, will deliver his inaugural National Budget Speech on February 23.

Godongwana has invited South Africans to share their suggestions on the budget including their views on what government should be spending on, how to address the budget deficit, new sources of tax revenues, and other budget-relevant information.

Layton Beard, the AA spokesperson, said the organisation was calling for a review of the fuel price structure and a recalculation of all the elements that comprised the fuel price. He said the signed petition would then be given to Godongwana and Gwede Mantashe, the minister of mineral resources and energy.

“Providing cheaper fuels to South African citizens will not happen with the flick of a switch but will require a multi-faceted, multi-departmental approach with the involvement of the private sector,” said Beard.

Beard said from January to December 2021, ULP95 petrol increased by R5.87 a litre, while ULP93 petrol increased by R5.89 a litre over the same period.

He said diesel 0.05 rose by about R5.47 a litre over this period, while diesel 0.005 increased by R5.50 a litre. Users of illuminating paraffin paid R4.83 more in December 2021 than they did in January 2021.

“The association believes a comprehensive, long-term analysis of the components of the fuel price needs to be done as a matter of urgency, and that all calculations relating to the fuel price be audited to determine if they are still relevant and appropriate to South African conditions.

“Continuing with a pricing model because it’s historically the one the country always used doesn’t make sense. Questions must be asked such as if there is a better model available and, if there is, should South Africa consider replacing the existing one.”

Beard said the General Fuel and Road Accident Fund levies contributed significantly to every litre of fuel sold, but citizens did not see tangible benefits from these taxes.

“Several questions relating to the allocation and utilisation of these funds are raised. For instance, the country continues to fund the Road Accident Fund through fuel taxes but it is poorly managed, and a drain on the country’s resources.

“Apart from poor management, are issues of whether the country has fully explored alternatives to compensate victims of crashes, and has the private sector been consulted for their inputs.”

Beard said the AA had been censored from accessing the daily fuel figures by the department of energy.

“Since October last year, we have not been able to provide our monthly fuel price outlook. However, we are currently working on addressing this issue.”

According to IOL reports, experts expect the fuel price to increase by R1.30 per litre in February. This comes on the back of rising global oil prices.

The possible increase will come after both 93 ULP and 95 ULP petrol decreased between 71 cents and 68 cents per litre, respectively, on January 5. The price of diesel dropped by between 67.8 and 69.8 cents a litre. Illuminating paraffin decreased by 71 cents.

Zohra Ally, who provides school transport services, said she was forced to increase her prices.

“But this is still not enough to meet the rising cost of fuel and the cost of living. We also cannot raise our prices every month when the fuel price goes up. Some of the children’s parents work part-time or are the sole breadwinners. They cannot afford the added expense, so I have to reduce my personal costs to ensure I have enough petrol.

“Most of the income I receive goes towards petrol for the month, vehicle repayment, insurance and my household needs. It is difficult to save for an emergency.”

Allan Govender, who owns a mobile fruit and vegetable business, said: “In the past, when petrol used to stagger between R14 to R15 a litre, I could fill about R200 a day and visit multiple areas selling produce. But now I have to fill R100 to R150 more petrol. I cannot increase the prices on the fresh produce all the time or I will lose customers. It is difficult to make any profit.”

A garden service and refusal removal business owner, who declined to be named, said: “My business requires daily driving to find customers. In previous years, I could fill about R150 and travel from Phoenix to Morningside and back home. Now that is impossible. I spend about R250 a day, sometimes more. We see little profit. How do I fill petrol for the next day and see to my household needs?”

To view and sign the AA’s petition, visit https://aa.co.za/review-the-fuel. Contributions on the budget can be sent through the National Treasury website.

NEWS

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2022-01-26T08:00:00.0000000Z

2022-01-26T08:00:00.0000000Z

https://thepostza.pressreader.com/article/281552294243025

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