Government mismanagement contributes to fuel price increases
Fuel and electricity price hikes will not help our economy
OUTA believes that Treasury has pushed the general fuel levy too far over the past decade, from R1.21/l at the start of 2008 to this month’s R3.52/l.
In 2008/9, the general fuel levy raised R25bn, an annual collection which has now trebled to R75bn. That extra R50bn is two-and-a-half times the R20bn price tag for the GFIP, which South Africa is now struggling to pay for.
The general fuel levy goes into general revenue rather than being earmarked for road projects.
“OUTA believes there is a need for transparency in the use and allocations of the fuel levy,” says Chauke.
The fuel price increases are also affected by the weak rand/dollar exchange rate.
This is a factor exacerbated by years of Government mismanagement.
The loss of South Africa’s oil reserves removed another cushion for price shocks; again, this was a result of mismanagement and likely corruption.