petrol theft

Petrol prices are now surging towards R30-per-litre in South Africa – Photo: Stock Image / Pixabay

Legislation to ‘protect’ drivers against high petrol prices on the cards

The DA is proposing legislation to help protect consumers against high petrol prices as fuel is ever-increasing in South Africa.

petrol theft

Petrol prices are now surging towards R30-per-litre in South Africa – Photo: Stock Image / Pixabay

The Democratic Alliance (DA) is planning to introduce legislation that will help alleviate exorbitant petrol prices in the country. 

The latest projections by the Central Energy Fund (CEF) indicate that South Africans could find themselves coughing up R3 more for fuel in June. 

LATEST FUEL PRICES PROJECTION

The latest data from the Central Energy Fund (CEF) which is the key institution that regulates the petrol price in South Africa indicates that petrol and diesel could increase for just under R2 per litre

To make things worse, the general fuel levy suspension is only in place for April-May 2022. This means when the petrol price is set for June, the R1.50 tax relief will be added back on to the estimated costs. That will take out petrol price towards an increase of more than R3-per-litre.

According to the CEF’s most recent update, the 95 Grade of petrol is set to skyrocket by R3.31, once the fuel tax is fully reinstated. Meanwhile, 93 Grade will see an increase of R3.25. The cost of diesel could now rise by up to R3.46, ensuring that it remains the most expensive fuel in SA.

DA WANTS LEGISLATION TO ‘CONTROL’ HIGH PETROL PRICES

The DA is planning to introduce a Private Members Bill (PMB) to codify, through legislation, the deregulation of the fuel price to encourage competition between wholesalers and retailers. 

petrol prices DA legislation
SA has faced massive hikes in the price of petrol this year – Image: Pexels

The party says the Bill will seek to protect the consumer from exorbitant price increases by decoupling the basic fuel price from government taxes and levies and additional margins used by wholesalers and retailers.

“The lapsing of the tax break and subsequent hefty increase will have a massive impact on the cost of living, hitting the poorest of the poor the hardest.

“Not only will transport prices increase, but food and other basic necessities will also become more expensive yet again. These prices do not ebb and flow like the fuel price. South Africans are already struggling to make ends meet and unemployment is soaring.”

DA

ALSO READ: Petrol price latest: SA on course for HORRIFIC R3-per-litre increase