Pretoria - While some organisations have expressed relief in the new proposed temporary reduction in the fuel levy, the South African National Taxi Council (Santaco) said the relief doesn’t make any difference in their industry.
Finance Minister Enoch Godongwana on Thursday announced that the general fuel levy would be temporarily reduced by R1.50 per litre from April 6 until May 31. The levy currently accounts for R3.85 per litre.
The chief strategic manager of Santaco, Bafana Magagula said a lot of things had increased following the last fuel increase and it had already affected prices of vehicles, increases on interest and increases on batteries.
“For instance, anyone who signed a contract with the bank during that time of the increase based on the fact that petrol was high and so on, can no longer do away with that contract.
“Also looking at where we come from with Covid-19, half loading and 70% capacity, which still exists in long distance operation, this makes no difference whatsoever, we have not benefited from what the Minister said,” Magagula said.
Meanwhile, the Chief Executive Officer at Road Freight Association, Gavin Kelly, said any reduction in the price of fuel is a good thing.
“Immediate relief for the consumer will not be felt as the previous fuel increases are only working through the logistics chain,” he said.
Kelly added that the exchange rate is what is killing consumers and that is where the government needs to make the changes.
Like Kelly, national spokesperson for the e-hailing industry, Vhatuka Mbelengwa said any relief will go a long way, however, he said the two months relief has some uncertainties about the future.
“A more permanent solution that can stabilise fuel costs would be preferred, but in the interim, we will take any sort of relief we can get,” Mbelengwa said.
South Africa’s petrol and diesel prices are still looking set to rise in April, albeit by a smaller margin.
Although April’s official fuel prices have not been announced as yet, unaudited late-month data supplied by the Central Energy Fund points to increases in the region of R1.80 for 95 Unleaded petrol, R1.72 for 93 Unleaded and R3.00 for 500ppm diesel.
IOL