Fuel price increase tightening the noose on SA economy

7 December 2022

Note to editors: Please find attached English and Afrikaans soundbites by Kevin Mileham MP.  See graph illustrating the fluctuation of the fuel price over the year.

While President Ramaphosa is busy dealing with the fallout of his Phala Phala scandal, millions of South Africans are buckling under economic pressure, compounded by yet another increase in fuel price.

The Department of Energy has announced that citizens will now pay 59 cents more for petrol and R1.57 and R1.52 less for diesel respectively.

The fluctuation in the fuel price this year has proven that South Africans are at the mercy of an uncaring government, taking them on a roller-coaster of disaster. Today's increase means South Africans are paying almost R4 more than in January this year.

Over R5 of the fuel price is an artificial levy and tax going straight to government. The general fuel levy of R3.93 per litre is little more than a corruption tax. Road users are effectively reimbursing the National Treasury for taxpayer funds lost to corruption and wasteful expenditure.

It is disgraceful that government calls for the price of fuel to increase given the country’s dire cost of living crisis, with no innovative solutions to provide any kind of relief.

The ANC Government is still committed to the same fuel pricing methodology that has resulted in consumers paying more and more over the past 12 months. They have not shown any real willingness to review the Basic Fuel Price methodology, or to engage business, civil society and other political parties on the matter. At the end of the day it is consumers and the economy that suffers.

The ANC is wholly to blame for the increase in the price of fuel because instead of lessening the burden on citizens they continuously bail out failed SOEs.

The DA therefore calls for the general fuel levy to be scrapped and for the deregulation of the fuel sector. Deregulation of the fuel sector will spur competition between sellers ultimately reducing the cost of fuel and the cost of living. We will continue to put pressure on Government to implement workable economic policies to get our economy on the path to growth and to urgently address the cost-of-living crisis.

Issued by Kevin Mileham, DA Shadow Minister of Mineral Resources and Energy, 7 December 2022