Kevin Mileham MP, DA Shadow Minister of Mineral Resources and Energy, says the ANC government has stubbornly refused to take urgent policy steps towards fuel price rationalisation in South Africa, despite a convergence of ideas from the Democratic Alliance (DA), civil society, and, most recently, the South Africa Reserve Bank (SARB).
In order to put South Africa’s fuel pricing mechanism in line with international best practise, the DA has consistently demanded that this be done. We believe that, after consulting with relevant parties in the industry, taxes, levies, transport, and storage expenses can be standardised globally to facilitate cost savings and rationalisation of fuel prices. He responded, “That view has lately been validated by a SARB economic paper in which the Reserve Bank acknowledged that there is possibility for reform in fuel price setting.
According to Mileham, the ANC administration has opted to hide its head in the sand rather than protect citizens from the effects of rising fuel prices. Energy Minister Gwede Mantashe is so set on keeping state control over the petroleum value chain that the department has taken no steps to initiate the reform process. “The ANC’s indifference and cavalier attitude confirms that they do not care about the welfare of consumers, even though there is clear evidence that high fuel prices are hurting the economy, pushing consumers to the brink, and exacerbating an already high cost of living environment,” he added.
The DA collected over 130,000 signatures on a petition requesting the Ministers of Finance and Mineral Resources and Energy to reduce fuel prices by focusing on the general fuel charge, fuel tax reform, and deregulation of the sector in June 2022.