ANC Statements

The ANC welcomes the temporary short relief reprieve on fuel levy aimed at assisting citizens amidst the ongoing conflict in Russia and Ukraine. The depressive impact on South Africans has been hard felt and this measure will go a long way in alleviating the impact exacerbated by a rise in food prices. We applaud government for moving with urgency.

We note the proposed two-phase approach to give immediate and midterm reprieve outlined in two phases

Phase one:
The general fuel levy (GFL) included in the Basic Fuel Price by R1.50/litre for the period between 16 April to 31 May 2022.

These changes will be reflected in the cost of diesel and fuel as follows:

• A reduction in the GFL in petrol from R3.85/litre to R2.35/litre
• A reduction in the GFL in diesel from R3.70/litre to R2.20/litre
  
  

Phase two:

• A reduction in the Basic Fuel Price of 3c/l, in line with the recommendations of the review done by the Department of Mineral Resources and Energy (DMRE).
• The termination of the Demand Side Management Levy (DSML) of 10c/l on 95 unleaded petrol sold inland.
• The introduction of a price cap on 93 octane petrol, following from the previous DMRE proposal and consultation.
• This will allow retailers to sell at a price below the regulated price.
• The termination of the practice to publish guidance by the DMRE on diesel prices to promote greater competition.
• The Regulatory Accounting System (including the retail margin, wholesale margin and secondary storage and distribution margins) will be reviewed to assess whether adjustments can be made to lower the margins over the medium term. Interventions will be considered by the DMRE to reduce the price pressure for illuminating paraffin over the medium term

The latest data from the Central Energy Fund shows South Africa could see an increase of between R1.76 –

R1.83/litre for petrol, and R2.98 – R3.14/litre for diesel in April.

We further urge government to expedite finalisation of long term plans and interventions to buffer the impact on

citizens.

END

ISSUED BY THE AFRICAN NATIONAL CONGRESS

Enquiries

Pule Mabe

National Spokesperson

071 623 4975