Cabinet needs to be ‘guided’ by Godongwana and Mantashe on fuel price hike – Minister in the Presidency

Minister in the Presidency Mondli Gungubele said the Minister of Finance Enoch Godongwana is expected to address the massive fuel price hike that is anticipated to hit motorists in June.

Gungubele was briefing the media on Thursday following the outcomes of the cabinet meeting held on Wednesday

Cabinet met with President Cyril Ramaphosa where it is understood the KwaZulu-Natal floods, monkeypox and the visit by German Chancellor Olaf Scholtz were among the topics discussed.

As the country braces for the fuel hike in June, economists Dawie Roodt told The Citizen, the increase is expected to be at least R3.50 per litre.

Gungubele said cabinet will need to be advised by Gondongwana and Minister of Energy and Mineral Resources Gwede Mantashe on the fuel price.

“We are very happy that we able to protect the motorist recently. What is the next step? … I have no doubt soon the Minister of Finance will guide us on the trends and what measures can possibly be put in place to help us to stay afloat on that matter.”

“The Minister of Finance I think is better placed to come with the exact specifics on that,” Gungubele said.

ALSO READ: SA motorists warned of massive petrol price hike in June

Roodt said there are three factors that will add to the increase in the petrol price in June.

These are:

• The exchange rate of the rand: The rand weakened, which will lead to an increase of around R1 a litre;
• International oil prices: The oil price has been relatively high and will add another R1 per litre;
• Fuel levy: The reduction in the fuel levy will expire at the end of May. This will add another R1.50 next month.

“So, in total, expect a petrol price increase of approximately R3.50 a litre, which will bring the petrol price well above R25 a litre,” said Roodt.

Meanwhile, the Democratic Alliance (DA) is encouraging South Africans to co-sign a letter to stop the government from implementing the upcoming fuel price hikes.

The DA’s letter has been directed to Godongwana and Mantashe.

DA Shadow Minister of Mineral Resources and Energy Kevin Mileham has implored Godongwana to scrap the 33% tax levy on fuel in order to keep the price within reason.

While the petrol price includes a number of taxes, the Department of Minerals Resources and Energy says that the increases or decreases in the petrol price is also determined by the price of crude oil and the rand’s performance against the US Dollar and other factors including Russia’s war in Ukraine.

ALSO READ: DA calls on government to scrap 33% tax levy on petrol