By Ragheema Mclean

The Automobile Association (AA) has cautioned Finance Minister Enoch Godongwana to carefully consider the negative impact of increasing fuel levies on consumers before making any decisions in his upcoming Budget Speech.

Minister Godongwana is set to deliver the 2024 budget speech at 14:00 today (February 21, 2024), where he will also introduce the Appropriation Bill during the same sitting.

Speaking on VOC Breakfast on Wednesday, AA spokesperson Eleanor Mavimbela expressed concerns over potential increases to the General Fuel Levy (GFL), noting that there has been no adjustment in the past two years.

Mavimbela warned that raising these levies could exacerbate financial hardships for already struggling consumers, particularly in light of the rising cost of living and stagnant incomes due to weak economic conditions.

The AA also highlighted previous instances where the government temporarily reduced the GFL in response to significant fuel price increases in 2022 but later reverted to the original rates.

With expectations of further fuel price increases in March 2024, the AA has called for a sustainable solution to address rising fuel prices in South Africa.

“It’s still tough for many South Africans, and for them to deal with having to absorb another price increase in March, it’s going to be catastrophic.”

“We urge the government to look at what is influencing these price increases and work towards improving them for all consumers.”

According to the Central Energy Fund, due to higher international oil prices, the prices of both 95- and 93-octane petrol are expected to increase by more than R1.30 per litre in March. Additionally, diesel prices are forecast to rise by approximately R1.40 to R1.60 per litre.

“We are hoping that even if he does increase the fuel levy, it’s not to the extent where consumers are struggling to put food on the table.”

“We’ve seen quite a number of job losses; salaries are not keeping up with economic pressures, so we are appealing to the Minister to put South Africans first regarding increases to the fuel levy.”

Any changes to the fuel levies announced by Minister Godongwana will take effect in April 2024.

VOC News

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