ANC wants government to freeze fuel levy to stop petrol price hikes

ANC wants government to freeze fuel levy to stop petrol price hikes

- The ANC has called on the national government to act boldly and freeze or lower the fuel levy in order to reduce the petrol price

- The ruling party is concerned about the impact the rising cost of fuel will have on the economy and millions of already strained South African households

- The ANC has also called on the government to increase its petrol reserves, intervene in the running of the RAF, PetroSA and the Central Energy Fund

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The African National Congress (ANC) has called on the national government, which it controls to act boldly in a bid to fight a rise in living costs. The ruling party wants the government to freeze or even (gasp!) lower the fuel levy in a bid to stop future petrol price hikes.

The party also wants the government to increase its strategic petrol reserves and more importantly to take steps to ensure the stability of finances at critical institutions such as the Road Accident Fund (RAF), the Central Energy Fund and PetroSA.

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The ANC is concerned about the impact the recent fuel price hikes will have on the South African economy and millions of already strained households in the country. ANC spokesperson Paul Mabe said the time had come for the government to lead the way and act boldly to fight inflation and the rise of the cost of living.

Briefly.co.za gathered that the comments come after South Africans had to endure yet another fuel price hike on Wednesday. The increase has sent petrol and diesel prices into new record-high levels.

eNCA.com reported that the price of petrol broke through the R16 per litre barrier in Gauteng for the first time this week.

Before Wednesday’s increase, South Africans paid R1.93 per litre of fuel to the RAF and another R3.37 to the general fuel levy.

The department of energy blamed the rand’s weakness against the US dollar coupled with the crippling fuel levy for the recent price increases.

The ANC accepted that the currency fluctuation was beyond the control of the government and blamed US President Donald Trump’s international trade war for the rand’s current woes.

Mabe called on OPEC to increase oil production which would ease supply constraints and in theory lower the price of oil thereby lowering fuel prices.

Mabe said the ANC believed the government could still enact various policies and mechanisms to restart the economy and lessen the impact of the fuel price on the economy and the people of the country.

Economists have warned motorists and consumers that another fuel price increase could be on the cards next month. If the current weakness of the rand continues and the price of oil remains at its current levels petrol could conceivably reach R17 per litre in the very near future.

READ ALSO: Percy Tau latest: Mamelodi Sundowns receive record-breaking R50 million final offer

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Source: Briefly.co.za

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