Transport Minister Fikile Mbalula has put brakes on speculation over a possible rise in the fuel levy to cover Gauteng freeway improvement bonds. Picture: ANA Archive
Cape Town - Transport Minister Fikile Mbalula has put brakes on speculation over a possible rise in the fuel levy to cover Gauteng freeway improvement bonds, saying no such pronouncements have been made.
He was reacting to a statement by the Organisation Undoing Tax Abuse (Outa), that the fuel levy will increase by 25c to 30c per litre.
Outa said it was concerned that the levy may increase to bring in more revenue.
“OUTA is concerned that the Minister of Finance Enoch Godongwana may seize the opportunity of this petrol price reduction to increase the fuel levy by 25c to 30c per litre, in order to raise additional revenue to cover the Gauteng freeway improvement bonds, which the e-toll debacle has failed to do.”
Outa chief executive Wayne Duvenage added that Mbalula “indicated that an announcement on the e-toll decision is expected to coincide with the Minister of Finance’s medium-term budget policy statement, due in October.
“Should this happen, Outa will denounce this decision on the basis that the fuel levy has already been increased in excess of R2.50/l since the Gauteng freeway upgrade began in 2008. Government failed to take up OUTA’s suggestion of a ring-fenced 10c/l increase to the fuel levy some eleven years ago which would have settled the freeway bonds by today.”
Mbalula said he noted the statement with concern.
“It must be made categorically clear that the government has not made any pronouncements on this matter. We therefore appeal to all stakeholders to desist from rumour mongering that is intended to create anxiety among motorists.
“I have engaged with the AA and Outa to discuss matters of mutual interest and I remain committed to constructive dialogue that assists in resolving challenges. There is no reason to be alarmist on possible pronouncements on the government’s decision on the funding of the Gauteng Freeway Improvement project. I urge everyone to await the formal pronouncements and not engage in speculation that offers no solution to our challenges,” Mbalula said.
Meanwhile the Automobile Association (AA) said significant decreases to fuel prices across the board were expected in September based on current unaudited mid-month data from the Central Energy Fund (CEF).
According to the data, 95ULP is expected to drop by around R2.60/l, and 93ULP by around R2.45/l. The wholesale price of diesel is expected to decrease by around R2.30/l and the price of illuminating paraffin by almost R2.00/l.
The main drivers behind the decreases are a strengthening Rand and lower international oil prices.
“The expected decreases are good news for consumers who have been battered and bruised by these prices the past six months. With these expected decreases, the price of 95ULP will dip below R23/l and the price of 93ULP will cost just more than R22.50/l. While fuel is still more expensive now than it was at the beginning of the year, these forecast decreases do offer some relief,” said the AA.
The Association added that while the figures were promising, it was only mid-month data and that the picture could change.
Cape Times