Democratic Alliance calls for fuel price deregulation

THE DA says it plans to introduce legislation to protect South African consumers against ever-increasing fuel prices.

This would be brought about by deregulating the fuel price to encourage competition among wholesalers and retailers.

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The party made this announcement on Wednesday ahead of the month-end expiration date of Finance Minister Enoch Gondongwana’s R1.50 temporary tax relief.

Come the beginning of June, South African motorists could see an increase of more than R3/litre of fuel, and as much as R25/litre.

Such a drastic jump in the price of fuel would lead to an increase in the cost of food, transport and other basic necessities.

The DA calls on Gondongwana to continue with the tax relief and to fast track the review of the fuel pricing model.

Gondongwana announced a temporary R1.50 reduction in the General Fuel Levy in March, to be effective from 6 April to the end of May.

He said the reduction would be funded by the liquidation of a portion of the country’s strategic crude oil reserves.

‘In this instance, the revenue foregone by the reduction in the levies will be recouped through a sale of strategic crude oil reserves, which are held by the Strategic Fuel Fund, a subsidiary of the Central Energy Fund. The sale would be required to raise around R6-billion,’ said Gondongwana in March.

At this stage, it is unclear whether or not the revised fuel prices for June will still include the R1.50 reduction to the General Fuel Levy.

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