His suggestion was met with mixed reaction. While some agreed with him and called for a review of all taxes and levies, others said they were not confident the government would listen to such an idea.
In his budget speech, finance minister Enoch Godongwana said he and mineral resources and energy minister Gwede Mantashe would review all aspects of the fuel price, a move welcomed by the AA.
“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 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,” the AA said.
FNB CEO Jacques Celliers told Business Times that while commodity prices are likely to remain high for a while longer and be supportive to the fiscus, there could be a spillover to inflation and fuel prices. This could lead to higher interest rates.
POLL | Should government suspend fuel levies to ease the petrol price?
As the conflict between Russia and Ukraine threatens a huge spike in fuel prices, One SA Movement leader Mmusi Maimane has called on the government to suspend fuel levies to cushion South Africans from inflation.
Petrol hit R21/l for the first time last week after a R1.46 increase, but there have been fears of a much steeper hike in months to come, with the conflict in Eastern Europe leading to a higher crude oil price and concerns about supply.
Anticipating soaring inflation, Maimane told his followers on social media “there must be zero fuel increases during this conflict”.
He urged the government to “suspend the levies and protect South Africans from inflation”.
His suggestion was met with mixed reaction. While some agreed with him and called for a review of all taxes and levies, others said they were not confident the government would listen to such an idea.
In his budget speech, finance minister Enoch Godongwana said he and mineral resources and energy minister Gwede Mantashe would review all aspects of the fuel price, a move welcomed by the AA.
“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 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,” the AA said.
FNB CEO Jacques Celliers told Business Times that while commodity prices are likely to remain high for a while longer and be supportive to the fiscus, there could be a spillover to inflation and fuel prices. This could lead to higher interest rates.
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