By Lehlohonolo Lehana.
Transport Minister Fikile Mbalula has expressed concern at the impact that the fuel hikes has on the public transport industry.
“The impact of the fuel hikes on ordinary citizens who rely on the taxi industry cannot be downplayed. I will engage with the leadership of the taxi industry on this matter within the broader context of government interventions to alleviate the fuel price impact on the cost of living of ordinary citizens, “Mbalula said on Friday.
The Minister noted statements made by some associations affiliated to the National Taxi Alliance (NTA) concerning a possible shutdown.
He said he plans to engage with the leadership of the South African National Taxi Council (SANTACO) on the fuel price increases and other pertinent matters affecting the industry.
The Minister also intends to engage with the leadership of the NTA on the possible measures to alleviate the impact of the fuel hike in line with their request to the Minister.
Mbalula is also concerned about the ongoing conflict in the taxi industry.
The Minister has committed to the implementation of the resolutions of the National Taxi Lekgotla, which includes the introduction of punitive measures against those who are party to taxi violence.
Mid-month data from the Central Energy Fund shows that motorists could see a petrol price reprieve for the first time in months – but the full withdrawal of the government’s interventions will undermine this.
The data, which serves as a snapshot of market conditions as of 14 July 2022, shows that the petrol price could drop by as much as R1.08 per litre next month, while diesel is showing an over-recovery of 94 cents per litre.
The mid-month snapshot is as follows:
°Petrol 95: over-recovery/decrease of 98 cents per litre;
°Petrol 93: over-recovery/decrease of 108 cents per litre;
°Diesel 0.05%: over-recovery/decrease of 92 cents per litre;
°Diesel 0.005%: over-recovery/decrease of 94 cents per litre;
°Illuminating Paraffin: over-recovery/decrease of 95 cents per litre.
The Department of Energy has stressed that the daily snapshots are not predictive and do not cover other potential changes like slate levy adjustments or retail margin changes, which are determined by the department at the end of the month, taking all variables into account.
The DoE makes adjustments based on a review of the entire period. Furthermore, the outlook can change significantly before month-end.
The snapshot also does not include the fuel price interventions announced by the Department of Mineral Resources and Energy and National Treasury in April 2022. The initial interventions saw R1.50 removed from the general fuel levy for April and May. This was then extended to June and then halved in July when 75 cents per litre was added back to the levy.
The intervention will come to an end in August, when the remaining 75 cents per litre will be added back to the price.
Without the government’s intervening extension, this means that instead of a R1 per litre drop in fuel prices in August, the reduction would be around 23 to 33 cents per litre for petrol, and 17 to 19 cents per litre for diesel.