Neighbouring countries that buy fuel directly from SA do not add these taxes to their fuel pricing, making their fuels cheaper than it is in the country which supplies them.
Last year saw fuel prices reach record levels and they are again touching those levels despite a decrease to fuel prices in January. The association said adjustments to the collection rates of these levies will have severe consequences for consumers and they should not be altered.
“Our country faces enormous and complex economic challenges. High fuel prices are adding to these challenges and instead of accepting the current model, we must seek solutions that benefit consumers, not place them in more financial distress. One immediate solution, for instance, is to review the funding of the poorly managed RAF. Our reliance on the RAF is a direct result of SA’s poor road safety and that’s where more attention needs to be given for a long-term solution,” urged the AA.
Signatures from the AA’s petition calling on the minister to #ReviewTheFuel in his budget speech next Wednesday will be submitted together with a letter from Association expressing its views on the levies and calling for him to initiate the fuel review. Citizens can add their voice to the petition by clicking here.
The association said it will also highlight that any tax increases will be viewed in the context of current spending, corruption, increases to utility fees, and increases to living costs, all at a time when more people than ever are unemployed.
“We must accept drastic intervention is needed if we are to grow our economy. One way we believe this can be done is by dealing more effectively with the fuel price than we are.”