Sahlulele Luzipo has praised Parliament for calling for a complete review of gasoline prices.
The portfolio committee on natural resources and energy in Parliament is advocating for a more long-term approach to cushion the fuel levy’s temporary relief.
The price of petrol jumped by R2.43/litre on Wednesday, bringing the cost per litre to over R24. The gasoline levy was postponed by Treasury and the Department of Resources and Energy.
Making the decision to gradually implement the R1.50 fuel fee from July 6 to August 2, the levy will be increased by 75c throughout this time.
While this is a nice interim measure, Chairperson Sahlulele Luzipo believes it does not provide a comprehensive solution.
He believes the government should consider relocating these taxes elsewhere, worrying that deregulation may harm black-owned firms.
The most recent rise has pushed many South Africans over the edge, with many planning a National Shutdown on July 10th in protest.
Many are calling for immediate intervention and a full petrol price review in order to reduce the country’s gasoline costs, but the Minister of Resources and Energy claims that a lot of variables are at play.
The confrontation between Russia and Ukraine, in particular, has had an impact on the price of oil.
Meanwhile, the EFF and DA have criticised the recent petrol price hike for June, claiming that it will disproportionately affect the poorest of the poor.
The Democratic Alliance is asking for fuel deregulation, arguing that providers should compete on pricing.
They also want the nearly R4-per-litre general fuel price abolished, as well as exemptions from the Road Accident Fund levy for motorists, taxis, and transportation companies.
If they already have insurance, this is the case. According to the DA, these steps might reduce fuel prices by 33%.