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Government decision not to raise fuel taxes ‘a milestone for consumers’ – AA



The Automobile Association (AA) welcomes the government’s decision not to raise fuel taxes after Finance Minister Enoch Godongwane’s budget speech on Wednesday.

The AA has described this as a milestone for consumers and praised the government for heeding its calls for a “review of all aspects of the fuel price” after lengthy campaigns and a petition from the AA question eternal fuel rises.

“This is a milestone for all consumers – not just motorists – and while fuel prices may still rise, the added burden of higher taxes is now out of the way. We are, of course, delighted that our calls have been heeded,” the AA said in a statement.

The association said it would engage the government to contribute in any way to the fuel price review, recognizing that its contribution is motivated by promoting and protecting consumer rights.

Last week, the association reiterated its call on the government to review its current fuel pricing model and launched an online petition that garnered 35,000 signatures.

It said it was pleased that teams from the Finance and Minerals and Energy departments were involved and that “achieving this is a major consumer victory”.

ALSO READ: Fix fuel pricing model and leave taxes alone, says AA ahead of Budget Speech

“Currently, these charges add up to R6.11 for every liter of fuel sold in the country,” the statement reads.

“Such increases would hurt the economy, be hard on the poor, and lead to increases in goods and services across the board, especially as fuel prices will hit record levels again in March.

“Our economy is closely linked to the price of fuel; it is a major input cost in the manufacturing, retail and agricultural sectors.

“We have previously noted that a review of the current structure of the fuel price, as well as an audit of all elements that make up the fuel price, should be done sooner rather than later,” the AA statement said.

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