JOHANNESBURG – The South African National Consumer Union (Sancu) is warning of difficult times ahead as the fuel levy kicks in next month.
Finance Minister Pravin Gordhan tabled his budget speech in Parliament last week announcing an additional 30 cents per litre that will be added to the general fuel levy, and 9 cents a litre more to the Road Accident Fund.
This is the second year in a row that a further 30 cents per litre is added to the general fuel levy, along with an additional 9 cents a litre to the Road Accident Fund levy.
Sancu’s Ina Wilkin says this means consumers will still have to dig deeper into their pockets whether the price of petrol increases or decreases.
“The price of petrol plays a major role in the economy of the country and in the day-to-day living standards of consumers.”
But Argon Asset Management economist Thabi Leoka disagrees.
“It’s actually included in the fuel price. So the fuel levy has increased but it’s actually a decline or a decrease in the petrol price, giving consumers a bit of relief.”
The price of both grades of petrol went down by 8 cents a litre on Tuesday night.
(Edited by Leeto M Khoza)