DA demands parliament scrap unnecessary fuel taxes ahead of petrol hike in June

With fuel prices set to increase again in June, the DA has demanded parliament scrap unnecessary fuel taxes.

The price of petrol is expected to rise by R3.50 per litre next month, with the return of the R1.50 per litre general fuel levy. 

The levy was cut by R1.50 a litre for April and May as the government sought to relieve the economic stress of surging fuel prices.

DA MP and shadow minister of mineral resources and energy Kevin Mileham said the party has written to the National Assembly speaker to request “a debate of urgent national public importance”. 

He said the debate would focus on the impact of steeply rising fuel prices and the steps that must urgently be taken to shield the poor from the worst effects of this.

“The price of petrol will drive up already sky-high prices of food and other essential goods, most of which are solely reliant on road freight due to the complete collapse of our national railway system, and thereby delivering a massive, destabilising blow to a nation already on its knees,” said Mileham in a statement. 

“June’s massive fuel price hike and its knock-on effects will hit the poorest the hardest at a time when they are already battling the deadly consequences of 46% unemployment, load-shedding, irrational Covid-19 regulations, soaring global inflation driven by Russia’s invasion of Ukraine, flooding in some areas and a state increasingly unable to deliver on even its most basic mandate.”

Mileham said household budgets were being decimated and any further petrol price hike risked pushing more than 30-million South Africans into destitution and hunger. 

He warned this could be a looming humanitarian catastrophe that could spark widespread social instability and a repeat of last year's July unrest.

“We need urgent intervention to shield poor consumers from the worst of these potentially deadly consequences. The government must agree immediately to restrict any rise in the cost of petrol and diesel in the short term to protect SA consumers from famine. 

“More basic items need to be immediately zero-rated for VAT, and a broader strategy needs to be developed to stem the rising cost of living which threatens the stability of our nation,” said Mileham.

The Automobile Association earlier this month said the relief offered in February by the reduction in the general fuel levy (GFL) had cushioned the blow of the increases but a more permanent solution must be found before month-end.

“Government provided short-term relief through reducing the GFL, but this relief ends at the end of May going into June. If the GFL returns to its set rate, that will add another R1.50/l to petrol and diesel and will certainly push the prices of these fuels much higher. The question now is how government plans to deal with the fuel price going forward, and how, ultimately, this will result in sustainable relief for SA consumers,” it said. 

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