Fuel crisis deepens as experts warn worst is yet to come
With some experts saying government could intervene with sharp fuel price increases, others warn the worst is yet to come for consumers.
The fuel crisis continues to worsen, with experts warning that the situation may worsen further. AfriForum, a civil rights organization, has criticized the government's response to the energy crisis, describing it as "paralyzed with indecision." The group has instructed its research department to investigate the components of fuel prices, including levies such as the general fuel levy, carbon fuel levy, and Road Accident Fund levy.
AfriForum has also urged the Minister of Finance, Enoch Godongwana, to conduct an independent audit of current fuel prices and levies, which has not yet happened. The organization aims to examine the efficiency, transparency, and proportionality of levies, the financial impact on consumers, transport operators, agriculture, and small businesses, as well as potential reforms to alleviate the burden on consumers.
Meanwhile, the Automobile Association of South Africa (AA) has called on the government to take action sooner, warning that the fuel price increase could reach R35 per liter. The AA's CEO, Bobby Ramagwede, stated that the price hike is much higher than the 30% increase in fuel prices within a year, from R19 in January to the current rate.
Economist Dawie Roodt emphasized that the country is facing significant challenges due to the financial blows it has taken, and that the economy is not in a good position to absorb such blows. He warned that an increase in interest rates may be necessary to combat rising inflation, but that it would have a negative impact on the economy due to the lack of demand.
Written by urgent.news from The Citizen's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
