Govt’s decision to not increase fuel levies ‘a landmark win for consumers’ – AA

The Automobile Association (AA) has welcomed the government’s decision to not increase fuel levies following the budget speech delivered by Finance Minister Enoch Godongwane on Wednesday.

The AA has described this as a landmark win for consumers and applauded the government for heeding its calls for a “review of all aspects of the fuel price” subsequent to prolonged campaigns and a petition by the AA calling into question perpetual fuel hikes.

“This is a landmark win for all consumers – not only motorists – and while fuel prices may still increase, the additional burden of higher taxes is now out of the way. We are naturally extremely happy that our calls have been heeded,” said the AA in a statement.

The association said it would engage the government with a view to contribute to the fuel price review in any way it can, mindful that its inputs are motivated by promoting and protecting consumer rights.

Last week, the association renewed its calls for the government to review its current fuel pricing model and launched an online petition which garnered 35,000 signatures.

It said that it welcomed the fact that teams from the departments of finance and minerals and energy were engaging and that “to make this happen is great victory for consumers”.

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“Currently these levies combine to add R6.11 to every litre of fuel sold in the country,” reads the statement.

 “Such increases would be damaging to the economy, hard on the poor, and would lead to increases to goods and services across the board, especially as fuel prices are slated to once again reach record levels in March.

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

“We have noted before that a review of the current structure of the fuel price, as well as an audit of all the elements which comprise the fuel price, should be done sooner rather than later,” the AA’s statement read.