AA Blogs and News

The massive fuel increases announced by the Department of Mineral Resources and Energy (DMRE) today will have a sharp and immediate effect on the poor, and a long-term impact on inflation. Commenting on the increases, the Automobile Association (AA) says the increases are above expectations, and will hurt all South Africans.

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.

Massive fuel hikes well above R1/l are on the cards for all grades of fuel going into March. This is according to the Automobile Association (AA) which was commenting on fuel price data released today by the Central Energy Fund (CEF).

“Our economy is closely linked to the fuel price; it is a major input cost in the manufacturing, retailing and agricultural sectors. We have noted before that a review of the current structure of the fuel price, as well as an audit of all the elements which comprise the fuel price, should be done sooner rather than later. We therefore call on the Minister of Finance to initiate such a review during his Budget Speech on 23 February,” says the AA.

The Automobile Association (AA) is encouraged that the driving licence production machine is again operational and that efforts are underway to clear the massive backlogs in the delivery of driving licences to motorists in the country. However, the Association remains concerned about the capacity of the renewal system to service the 2.1 million motorists who must renew their licences before the end of March and believes that more time is needed to resolve the current backlogs.

Ominous oil price data is the main cause of increased fuel prices. This is according to the Automobile Association (AA), which was commenting on the latest price hikes for February announced by the Minister of Mineral Resources and Energy (DMRE).