Civil rights organisation AfriForum has called on finance minister Enoch Godongwana to implement a fuel levy decrease rather than proceed with planned increases, citing concerns over rising oil prices amid the Middle East conflict.
In a letter to the minister, Ernst van Zyl, AfriForum’s head of public relations, warned that the recent Middle East conflict has caused oil prices to surge more than 40%, with experts estimating prices could rise above $150 per barrel.
The organisation, representing more than 300 000 donating members, argued that the dramatic fuel price increases would create a ripple effect throughout the global and domestic economy as transport costs rise, leading to increases in the prices of basic goods.
AfriForum urged the minister not to follow through with the fuel levy increase announced during his budget speech, instead advocating for a decrease to help the economy and consumers cope with rising transport and goods costs.
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The organisation cited a precedent from March 2022, when Godongwana, in cooperation with the minister of mineral resources and energy, announced a temporary reduction in the general fuel levy of R1,50 per litre to provide relief following the Russia-Ukraine conflict.
That relief measure was funded through the liquidation of a portion of the country’s strategic crude oil reserves, which AfriForum believes would be an appropriate approach to address the current crisis.
Van Zyl emphasised that, as a civil society organisation, AfriForum has a responsibility to advocate in the interest of the broader South African public and protect their rights.
