One SA Movement leader Mmusi Maimane has called on the government to suspend fuel levies to cushion South Africans from inflation that will follow soaring petrol prices.
Petrol hit R21 a litre for the first time last week after a R1.46 increase. There have been fears of a much steeper hike in months to come with the conflict between Russia and Ukraine leading to a higher crude oil price and concerns about supply.
Taking to social media at the weekend, Maimane said there should be no increase in the petrol price amid the crisis, calling on the government to instead suspend levies.
There must be zero fuel increases during this conflict. Suspend the levies and protect South Africans from inflation.
— Mmusi Maimane MP (@MmusiMaimane) March 6, 2022
His suggestion was met with strong reaction online.
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.
FNB CEO Jacques Celliers told Business Times that while commodity prices are likely to remain elevated for a while longer and be supportive to the fiscus, there could be a spillover to inflation and fuel prices. He added this could lead to higher interest rates.
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