The relief of the fuel tax “did not completely take away the pain”



The Automobile Association (AA) says the recent fuel tax relief won’t necessarily ease the pain in motorists’ pockets.

Gasoline prices will rise at midnight with 93 UPL of petrol up by 28 cents per liter and 95 UPL by 36 cents, while the price of diesel will rise between R1.52 and R1.69 per liter.

95 ULP will cost R21.96 for inland and R21.24 for coastal areas.

This despite the announcement of Finance Enoch Godongwana last Thursday a temporary reduction in the general fuel tax (GFL), which will decrease by R1.50 per liter from Wednesday until May 31st.

Godongwana said the decrease will reduce the tax for gasoline from R3.85 per liter to R2.35 per liter.

READ ALSO: Could today’s emergency fuel intervention save consumers’ empty pockets?

The diesel tax will be reduced from R3.70 per liter to R2.20 per liter.

According to Minister of Mineral Resources and Energy Gwede Mantashe, the increases in both petrol and diesel would have been close to R2.00 per liter and over R3.00 per liter, respectively, had there been no government intervention.

Although the AA welcomed the reduction in the levy, it indicated that the suspension of the levy will not take the “pain” away from motorists.

“These are record fuel prices across the board and while government intervention has somewhat cushioned the blow, it hasn’t entirely taken away the pain,” the association said in a statement. statements.

“The action to cut the GFL is significant as it shows that the government is taking the issue of rising fuel costs seriously, which is to be welcomed,” the AA added.

The association also proposes government proposals to address rising fuel costs in the future.

“Whatever plans the government is considering, however, these should be accelerated as the trend of rising fuel prices is likely to continue in the short to medium term, especially as the situation in the Ukraine remains unresolved, which is increasing the pressure on the international price of petroleum products and, in turn, on local prices, “concluded the AA.

READ MORE: Lowering the fuel price by R1.50 is a little pity, but we accept it

The government is planning to take further measures to ease the burden on motorists liberalization of the price of petrol.

Deregulation will only happen when the Treasury understands how to recover the Rand 90 billion loss from fiscus that would happen if fuel taxes were removed in one go.

Godongwana said Sunday times that there are many options on the table to achieve this, such as additional fees on license renewal fees to finance the Traffic Accident Fund (RAF).

There has been talk of The RAF tax in the demolition phase from the fuel tax and locating it elsewhere, which was supported by Parliament’s portfolio committee on mineral resources and energy.

READ ALSO: Parliament supports the decision to remove the RAF from the fuel tax