AfriForum has written to Finance Minister Enoch Godongwana demanding an independent audit of the fuel price and levy, including the general fuel levy, carbon fuel levy and the Road Accident Fund levy.
This week saw another massive fuel price hike in South Africa as petrol increased by R1.34 per litre and diesel by between R2.94 and R3.15 per litre. The latest hike means 95 unleaded petrol inland now costs R26.92 per litre, compared to R20.38 in January this year. Diesel has jumped even more dramatically, with the 0.005% sulphur grade inland now sitting at R30.05 per litre, up from R17.95 in January – an increase of more than R12 in just eight months.
Afriforum is requesting that the audit examines how the various components of the fuel levy are calculated and applied, whether the current structure is efficient and transparent, what the funds are used for, the economic impact on consumers and businesses, and options for reform.
AfriForum has also requested to be part of such a reform process to make presentations on behalf of consumers.
In June, AfriForum wrote to the minister urging that the temporary general fuel levy reduction be made permanent or extended beyond the 1 July deadline. The levy relief was withdrawn from 1 July.
According to the organisation, fuel prices have not fallen to pre-shock levels.
AfriForum has requested either a permanent reduction in the general fuel levy or a reinstatement of relief while oil prices and geopolitical risk remain elevated.
Ernst van Zyl, head of public relations at AfriForum, said the government remains responsible to cushion households and the economy from global shocks.
“A tax that forms a large share of the pump price should be put under proper scrutiny to explore possible long-term reforms,” Van Zyl said.
