Fuel diesel

The latest data from the Central Energy Fund shows that South African motorists will see a diesel price increase in early October 2022. Image: Helen Rickard / Flickr

These proposals could SLASH our fuel prices by R6-per-litre

It’s a policy that, in theory, could be put in place TODAY – but how would proposals to take R6-per-litre off our fuel prices actually work?

Fuel diesel

The latest data from the Central Energy Fund shows that South African motorists will see a diesel price increase in early October 2022. Image: Helen Rickard / Flickr

Will these pleas fall on deaf ears? The DA has presented its argument for dramatically-reduced fuel prices to Parliament on Wednesday, with opposition leader John Steenhuisen arguing that the ANC could ease the cost of living crisis TODAY.

Proposals to cut fuel prices tabled: How would they work?

Steenhuisen’s ambitious proposals would slash fuel prices by R6-per-litre. This would bring SA in line with the costs set in Botswana, where the government does not add an exorbitant amount of tax on to its crude oil products.

Of course, reducing the value of petrol and diesel prices would leave a hole in the fiscus. But the DA is confident that it has a method to make up for these costs, through THREE main avenues of raising capital:

According to the DA, we could knock R6-per-litre off fuel prices by…

  • Majorly reducing the tax value attached to our petrol and diesel costs.
  • Deregulating the fuel market, which would allow providers to set their own rates and promote discounted offers.
  • Slashing budgets for the Presidential Protection Unit, and selling-off some State-Owned Entities to fund the R6 cuts.

Cost of living crisis leaving South Africans ‘gatvol’

A suspension of the General Fuel Levy, to the tune of R1.50-per-litre, is currently in place for SA. That will reduce to 75 cents-per-litre in July, before expiring in August. As far as Steenhuisen and his colleagues are concerned, the government isn’t doing enough to help the public:

“Our neighbours are paying R6 less because their government is not slapping on R6 of tax. When the DA leads a national government in 2024, we’ll bring fuel prices into line with Botswana. But South Africans shouldn’t have to wait two years to pay R6 less for petrol.”

“And they can’t afford to wait two years before they can pay for food and taxis. We need to end the cost of living crisis now. We need a president that has full focus on running South Africa, not one eye on stashing his cash.”

John Steenhuisen