South Africa’s Democratic Alliance (DA) has called for a 50% reduction in fuel-related levies as the country prepares for what could be the largest petrol and diesel price increase in its history.
The proposal comes amid rising global oil prices driven by escalating conflict in the Middle East, which has placed significant pressure on fuel costs and raised concerns among motorists nationwide.
proposal aims to ease consumer burden
The DA has indicated its willingness to engage with the African National Congress (ANC), its partner in the Government of National Unity, as well as Finance Minister Enoch Godongwana, to consider cutting both the general fuel levy and the Road Accident Fund (RAF) levy by half.
According to DA finance spokesperson Mark Burke, these levies currently contribute approximately R6.35 per litre to the total fuel price. A 50% reduction could lower the expected increase by around R3.17 per litre.
Burke warned that rising fuel costs would have widespread economic consequences, including higher transport expenses, increased food prices, and pressure on household budgets—particularly for low-income earners who already spend a significant portion of their income on commuting.
economic trade-offs and government response
While acknowledging that the proposed levy reduction would result in an estimated R6.5 billion monthly loss in government revenue, the DA argues that failing to act could have more severe economic consequences.
Economists have long noted that fuel price shocks tend to drive inflation and slow economic growth, making policy responses critical during periods of global instability.
Meanwhile, Minister of Mineral and Petroleum Resources Gwede Mantashe has sought to reassure the public that there is no immediate threat to fuel supply. He stated that shipments destined for South Africa continue to pass through the Strait of Hormuz without disruption.
However, Mantashe also noted that South Africa has limited ability to shield itself from global oil price movements, given its reliance on imported fuel.
With official fuel price adjustments expected to be announced soon, the debate highlights the broader challenge facing policymakers: balancing fiscal stability with the need to protect consumers from external economic shocks.
Source: citizen
