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AfriForum launches its own investigation into fuel levies following government inaction

Soundbite: Ernst van Zyl (English)
Soundbite: Ernst van Zyl (Afrikaans)

AfriForum today instructed its research department to conduct a comprehensive investigation into the composition of the country’s fuel prices. The investigation will focus specifically on the various levies, including the general fuel levy, carbon fuel levy, and the Road Accident Fund levy, as well as related slate mechanisms.

In September, the civil rights organisation requested Enoch Godongwana, the Minister of Finance, to conduct an independent audit of current fuel prices and levies. Since then, there has been no indication that the Minister’s office intends to undertake such an audit. AfriForum has, consequently, decided to conduct the audit itself.

This audit will investigate the calculation of the various levies; their application, efficiency, transparency and proportionality; the utilisation and effectiveness of the funds; the economic impact on consumers, transport operators, agriculture and small businesses; and options for lasting reform to relieve pressure on consumers.

As early as June this year, AfriForum urged Godongwana to make the temporary reduction of the general fuel levy permanent or, at a minimum, to extend it. Since then, oil prices have remained high, and the global energy crisis remains unresolved. In June, AfriForum also warned that a short-lived cut would merely postpone the pressure on consumers, businesses and the economy rather than helping them avoid it.

Fuel prices are set to reach record highs by midnight (7 October), with the price of petrol and diesel rising by about R3 per litre. This drastic increase in transport expenses will have a devastating inflationary ripple effect throughout the economy, hitting businesses, the agricultural sector, and consumers particularly hard.

According to Ernst van Zyl, Head of Public Relations at AfriForum, the government is responding like a deer in the headlights of the energy crisis: paralysed with indecision. “As a civil society watchdog, AfriForum cannot stand idly by as the country’s people are financially crippled at the fuel pump. The government has the power to intervene and does nothing. Someone must expose the root cause of the cost-of-living crisis and push for desperately needed reforms. AfriForum is willing to take on this necessary fight,” Van Zyl concludes.

AfriForum will keep its members and the public informed about the progress of its audit and will release the findings in due course.

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