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Tuesday, July 16, 2024

Fuel levy relief only way to avoid hitting R25 per litre of petrol

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The Organisation Undoing Tax Abuse (OUTA) has called on the treasury to extent the fuel levy relief beyond the 31st of May to avoid fuel prices hitting the unprecedented R25 per litre mark which will have devastating consequences for consumers.

CEO Wayne Duvenage said failure to extend the temporary relief will see fuel prices increase to over R25 per litre in the coming months.

Duvenage said a huge increase in petrol and diesel prices will have a massive negative impact on commodity prices which are already too high for consumers.

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Duvenage said this during a live interview on eNCA on Tuesday night.

The price of fuel is expected to reach record highs amid a weakening rand and the ongoing war between Russia and Ukraine. 

Since Russia invaded Ukraine in February, the price of brent Crude oil has consistently traded above $110 a barrel. 

Duvenage says if the attempts by the organisation to have the fuel levy put on hold are not successful then Godongwana should consider a phased-in approach. 

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Read also: Perfect fuel storm threatens to finish off struggling transport companies

“OUTA has also suggested that in the event that this reprieve must be terminated, that the minister considers a phased-in approach over three months at 50c a month.”

The price of fuel is currently R21.51 per litre while the price of diesel sells at just under R22 per litre.

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