Government taxes are steepening fuel prices in the country

Government taxes are steepening fuel prices in the country

- The government is making efforts to reduce fuel levies to make the price more affordable to consumers

- While most factors are uncontrollable such as the price of crude oil on the international market, the government can find ways to reduce the levies it has control over.

- A inter-ministerial committee looking into price hikes has been appointed and will draw up resolutions to be presented to President Ramaphosa for consideration

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The recent fuel hikes have once again raised the issue of a public discourse about how the government can alleviate the pressure on consumers. The factors that determine fuel price particularly from international markets remain unchangeable. However, analysts are convinced a revision of the government's tax regime on fuel can lead to a significant drop in its prices.

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Government taxes are steepening fuel prices in the country

Energy Minister Jeff Radebe

Energy Minister Jeff Radebe is part of a panel of Ministers who are looking to find a solution to ther impact of the price hikes. According to moneyweb.co.za, the minister will update cabinet on how to minimise the effects of fuel hikes for South Africans. Government's commitment to dealing with the fuel price hikes will be very difficult given that the taxes contribute 6% to South Africa's gross tax revenues.

Government taxes are steepening fuel prices in the country

Fuel levies account for a significant portion of the high fuel prices

Briefly.co.za learned that Treasury marked fuel tax revenues at R77,5 billion in the 2019/2019 budget. It is not likely there will be an immediate solution in sight or an enforced price freeze. According to the southafrican.com; analysts have warned that despite South Africa dealing with its fifth consecutive hike in August, the hikes could last until 2019. The SA fuel price is close to the global average and unless there is a radical shift in government policies its not likely much will change.

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Source: Briefly.co.za

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