Hope Ntanzi|Published
President Cyril Ramaphosa says the government is considering further measures to ease the burden of rising fuel prices but has warned that intervention would mean taking money away from other government programmes.
Speaking to journalists on the sidelines of the Bana Pele ECD Summit in Sandton yesterday, Ramaphosa said rising fuel prices were a global problem and the government was weighing its options as South Africans faced mounting living costs.
“The issue of the fuel price is a problem globally. We're not the only country that is affected by rising fuel prices and of course there are various responses by various entities and governments and businesses and we are giving serious consideration on what needs to be done,” he said.
Ramaphosa said the government had previously intervened when fuel prices increased, spending about R24 billion on a subsidy system.
“You must remember that when the fuel price rose a few months ago, government intervened and poured into a subsidy system about 24 billion rand,” he said.
The comments come as motorists face record fuel prices following the increases that took effect on October 7.
Inland 95-octane petrol rose by R3.33 a litre to R30.25, while 93-octane petrol increased by R3.12 to R29.88. Diesel prices also rose sharply.
The increases came after the temporary fuel-levy relief introduced between April and June was phased out.
The relief reduced the general fuel levy by R3 a litre on petrol and by up to R3.93 a litre on diesel at its peak.
Parliament has since advanced a proposed R10 billion fuel-relief allocation for debate in the National Assembly. However, the proposal does not guarantee an immediate reduction in petrol and diesel prices.
The pressure on government to act is mounting ahead of Finance Minister Enoch Godongwana’s Medium-Term Budget Policy Statement tomorrow (Wednesday).
COSATU general secretary Zingiswa Losi called on government to release the proposed R10 billion for fuel-price relief, warning that rising fuel costs were putting further pressure on workers and the economy.
Parliament’s appropriations committees have called for clear measures to ensure the proposed relief reaches its intended beneficiaries and delivers measurable results. Questions remain over how the money would be used, who would benefit and how long the intervention would last. The proposed allocation does not guarantee an immediate reduction in petrol and diesel prices.
Against this backdrop, Ramaphosa cautioned that government intervention came at a cost to other priorities.
“Now that is R24 billion that we are removing from other programmes,” he said.
With fuel prices rising again, he said the government was considering what further action could be taken.
“Now that it's gone up again, everyone in the world is giving consideration on what they should do, so are we,” he said.