Ramaphosa weighs fuel relief as Creecy rejects levy hike

Last week, President Cyril Ramaphosa acknowledged the impact of higher fuel costs on consumers and businesses. Transport Minister Barbara Creecy has ruled out any request to increase the fuel levy while she remains in office, saying South Africans already face significant financial pressure and that fixing the Road Accident Fund (RAF) should take priority. South African motorists are paying nearly R30 a litre for petrol, prompting fresh calls for the government to slash fuel levies as households buckle under soaring transport, electricity and food costs. The Department of Mineral Resources and Energy (DMRE) last week announced that 93-octane petrol will increase by R3.12 per litre and 95-octane petrol by R3.33 per litre. Fuel levy Speaking about growing concerns over rising fuel costs, Creecy said the solution was not to place additional burdens on motorists, but to address longstanding problems within the Raf. “As long as I’m in this job, we will not apply to National Treasury for an increase in the fuel levy. I think consumers are under enough pressure,” she told eNCA. Raf board The minister said the department’s focus was on restoring stability to the financially troubled fund, which is financed through the fuel levy. Creecy noted that the Raf board was dissolved last year and replaced with an interim board, while the process of appointing a new chief executive officer has received Cabinet approval. “We’ve got to sort out the finances and the management so that we stop wasting money,” she said, adding that the fund needed stronger governance and accountability. Ramaphosa on fuel Last week President Cyril Ramaphosa acknowledged the impact of higher fuel costs on consumers and businesses, saying government was considering possible interventions. “The rise in the price of fuel has been occasioned by the war in the Middle East. It’s affecting many countries around the world,” Ramaphosa said. While he confirmed that the government was exploring options to provide relief, he cautioned that any intervention would need to be carefully weighed against its impact on the country’s finances. “We are now giving consideration. It’s a budgetary issue. It does actually eat into our country’s reserves and our country’s fiscal position. We’ve got to consider the impact of anything that we can do,” he said. Ramaphosa added that any decision would require thorough consideration and could not be made overnight. Government acted before Last week, Misa, the Motor Industry Staff Association, called on the government to urgently reinstate a temporary General Fuel Levy reduction as fuel prices hit record levels. Misa noted that government had acted before. In April, after organised labour pushed for relief through Nedlac, Treasury cut the General Fuel Levy by R3 a litre and reduced the diesel levy to zero. That relief has since lapsed, leaving motorists exposed to the full levy of R4.10 on petrol and R3.93 on diesel.