The Portfolio Committee on Mineral Resources and Energy has proposed a temporary ‘tax holiday’ from fuel to ease the pressure on South Africans facing huge petrol price increases.
The committee met on 29 March 2022.
The AA – the Automobile Association – predicts petrol and diesel prices will rise in the first week of April by more than R2 a litre, with the ongoing Russian invasion of Ukraine pushing the price of oil to $130 a barrel.
In his Budget speech in the National Assembly on 23 February, Finance Minister Enoch Godongwana said that to alleviate some of the pressure on South Africans, following the global economic recovery that led to rising fuel prices, there would be no increases to the general fuel levy on petrol and diesel for the 2022-23 financial year, as well as no increase in the Road Accident Fund levy.
This came a day before the Russian invasion of Ukraine, which pushed up oil prices even further. Godongwana said that the department wanted to put a plan in place to mitigate the rising prices of fuel on 23 March.
The mineral resources and energy committee has suggested that the government could scrap or lower levies. At present, R3.93 of every litre goes to a basic fuel levy and R2.18 goes to the Road Accident Fund.
This could cushion the blow of further price increases in April and May and could encourage more South Africans to travel over the Easter holidays.
Picture: Pexels
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