SA Government Looking To Ease Food Inflation As Prices Increase
- The government has sacrificed a large chunk of the fuel levy to provide peace of mind to consumers
- Food prices are expected to increase drastically as fuel prices skyrocket due to the Middle Eastern conflict
- South Africans did not believe that the measures taken were sufficient to curb the impact of the price increases
Tebogo Mokwena, a Briefly News current affairs journalist in Johannesburg, South Africa, analysed policy changes and economic development at Vutivi Business News for three years.
Source: Getty Images
JOHANNESBURG, GAUTENG— The government’s decision to sacrifice 70 percent of the fuel levy has been cautiously welcomed. However, South Africans believe that more could be done.
The Deputy Director-General of the Department of Mineral Resources and Petroleum, Tseliso Maqubela, said on eNCA that the R3 fuel levy cut announced would be in effect for a month while the government searches for measures to cushion the consumer.
Government steps in to help consumers
Maqubela remarked that the government will also look into other areas to provide comfort, but the 70 percent reduction was all the government could do to cushion the consumer. The DDG added that the fuel levy, which decreased, is a big move. He said other levies are small compared to the fuel levy. He remarked that governments in the world have opted for reductions of between 50 to 60 percent.
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“It’s a big move from the side of the government,” he said.
Maqubela also said that Ministers were briefed on the progress of the measures to respond to the fuel prices. He said it is important to consider how to minimise the impact of the fuel price on food inflation.
Maqubela also pointed out that despite the closure of the Strait of Hormuz, there is sufficient oil supply in the country. The conflict between Iran, the United States, and Israel affected the oil prices as Iran closed the Strait of Hormuz. Mineral and Petroleum Resources Minister Gwede Mantashe told Parliament in March that ships destined to South Africa are passing through the Strait without incident.
South Africans slam government
The government bore the brunt of criticism levelled at it on social media.
Johan Du Plessis disputed the figure.
“70%?? You’re mistaken. About 45% of our fuel cost is tax. So on R30 it is about R13. The R3 the state is giving a discount on tax now is around 15%, not 70%.”
Suricia Richards said:
“Temporarily, yes. We are soon going to get the shock of our lives.”
Melodie Jackson Potter was not happy.
“The problem is that every time the petrol goes up, food or grocery prices go up, and when petrol prices come down, food stays the same price.”
Beemchund Thupsee added:
“They must have looted enough. Now they are showing that they care just to get votes.”
Lesley Pole remarked:
“Guaranteed to not benefit the man on the street.”
NTA to announce taxi fare increase
In a related article, Briefly News reported that the National Taxi Alliance announced that taxi fares could increase as a result of the petrol price hike. The South African National Taxi Council also weighed in on the fuel increase.
SANTACO said that the fuel increase is affecting the taxi industry and consumers. The spokesperson, Mmathsikhidi Phala, said that petrol stations are overpricing the fuel.
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Source: Briefly News
