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Government heeds calls by AA on fuel levies and pricing model

In a landmark win for consumers, the Minister of Finance, Mr Enoch Godongwane, today heeded calls by the Automobile Association (AA) not to increase the rate of fuel levies, and at the same time announced a “review of all aspects of the fuel price” subsequent to prolonged campaigns and a petition by the AA calling into question perpetual fuel hikes.

 

The AA had earlier urged the Minister not to increase the two main levies on the fuel price – the General Fuel and Road Accident (RAF) levies. Currently these levies combine to add R6.11 to every litre of fuel sold in the country.

 

The AA called on the Minister not to increase these levies – as had been the case in previous years – saying such increases would be damaging to the economy, hard on the poor, and would lead to increases to goods and services across the board, especially as fuel prices are slated to once again reach record levels in March.

 

“This is a landmark win for all consumers – not only motorists – and while fuel prices may still increase the additional burden of higher taxes is now out of the way. We are naturally extremely happy that our calls have been heeded,” says the AA.

 

In addition, the AA says Minister Godongwane’s announcement that he and Mineral Resources and Energy Minister Gwede Mantashe have agreed to review all aspects of the fuel price is an equally welcome development.

 

“We launched an online petition which secured 35 000 signatures to urge government to #ReviewTheFuel and the fact that teams from the Departments of Finance and Minerals and Energy are engaging to make this happen is great victory for consumers,” says the Association.

 

The Association says it, too, will engage government with a view to contributing to the fuel price review in any way it can, mindful that its inputs are motivated by promoting and protecting consumer rights.

 

The Automobile Association is the champion of South African consumers and contributes to the national debate on issues affecting all road users through its public advocacy campaigns. To support these campaigns, and to have the peace-of-mind the range of benefits offered by the AA brings, visit https://aa.co.za/membership/.