Fuel Levy Hike: South African Consumers Face Heavier Burden, says RFA

The Road Freight Association (RFA) notes the decision by the Minister of Finance to increase the fuel levy by 4% (petrol 16 cents and diesel 15c a litre).

The Road Freight Association was established in 1975 to support its Members who are, in the main, road freight operators. It is a lobbying and negotiating body which influences the state of the industry, rates, upkeep of the road infrastructure, road safety, freight security, driver interests, cross-border transport, education, health, the fuel price, law enforcement, labour relations and many other issues related to road freight transport.

The increase in the fuel levy will be directly felt by consumers, as transporters cannot absorb increases without detrimental effects on their bottom line (business sustainability).

The increase means that Treasury is "finding" R4 billion towards the R75 billion shortfall from the previous iteration of the budget; however, this underscores that Treasury would rather tax citizens than cut the wasteful expenditure that has brought the country to where it is.

Transport will become more expensive, consumers will pay more, and the old adage that the government can keep increasing taxes and levies to fund its uncontrolled spending remains true.

Government does not have money

The government does not have money. It belongs to the taxpayers, and the time for accountability and responsibility has come.

Unfortunately, from June, the cost of logistics, 85% of which runs by road freight, will become more expensive.

The consumer will pay more, transport through South Africa will become more expensive, global supply chains will re-evaluate their routes and you and I will dig deeper into our pockets for goods and services and transport to work whilst the government has "found" a way to fund its salary and wage increases, as well as all the other vanity programmes it constantly runs.

This is not a good decision, neither in the medium nor long term.

What you need to know about the fuel prices in SA

• Motorists can rejoice as the petrol price will come down for a fifth consecutive month in South Africa.
• The latest data predicted fluctuating costs following the first fuel price hike since July in November.
• President Cyril Ramaphosa stated in his weekly newsletter that the increase in food and fuel prices is beyond the government's control.
• A refinery fire has threatened the supply of jet fuel to the O.R. Tambo International Airport. The Airports Company of South Africa (ACSA) has put plans in place to ensure no disruptions.
• Finance Minister Enoch Godongwana announced that the Value-Added tax rate would remain at 15%. In an attempt to boost revenue, the general fuel levy will increase by 16 cents per litre for petrol, and by 15 cents per litre for diesel.

Fuel prices set to drop

Briefly News previously reported that motorists can expect some relief at the pumps as fuel prices are projected to decrease again.

This positive forecast is attributed to the improved performance of the rand against the US dollar and the stability in global oil prices.

Disclaimer: The views and opinions expressed here are those of the author and do not necessarily reflect the official policy or position of Briefly News.

Source: Briefly News