AfriForum to investigate South Africa’s record-high petrol prices

Following the latest round of petrol price increases in South Africa, civil rights organisation AfriForum’s research department will conduct a comprehensive investigation into the composition of the country’s fuel prices

It said the investigation will focus specifically on the various levies, including the general fuel levy (GFL), carbon fuel levy, and the Road Accident Fund (RAF) levy, as well as related slate mechanisms.

This comes after the organisation urged the Minister of Finance, Enoch Godongwana, 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,” it said.

The organisation’s audit will focus on how the various fuel levies are calculated and applied, as well as their transparency and proportionality, and the utilisation and effectiveness of the funds.

It will also examine the economic impact on consumers, transport operators, agriculture and small businesses, while looking into options for lasting reform to relieve pressure on consumers.

In June, AfriForum called on the Finance Ministry to make the temporary general fuel levy permanent, or at least extend it until global oil prices return to relative stability.

“Since then, oil prices have remained high, and the global energy crisis remains unresolved,” it said.

As a consequence, fuel prices reached a record high this week, and look destined to get even worse next month.

Ernst van Zyl, Head of Public Relations at AfriForum, said the government is responding like a deer in the headlights.

“As a civil society watchdog, AfriForum cannot stand idly by as the country’s people are financially crippled at the fuel pump,” he said.

“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.”

Opposition party calls for an end to RAF levy

With the Road Accident Fund in particular losing R21 billion per month, the Democratic Alliance (DA)’s Spokesperson on Transport, Dr Chris Hunsinger, has called for the fund and its levies to be scrapped.

In a statement, the party said it stands in solidarity with all South Africans who are angry about the latest fuel price hike.

“This will further burden households and businesses, making life even more expensive for the average South African,” Hunsinger said.

He added that the only way for South Africa to lower fuel prices is to end the levy on every litre of fuel that funds the failing Road Accident Fund.

“Urgently reforming and replacing the dysfunctional Road Accident Fund will cut the cost of every litre of fuel,” said Hunsinger.

The Road Accident Fund recently told Parliament that it has R450 billion in outstanding claims against an annual income of R47 billion.

As a result, it would take more than 10 years to clear the current backlog before it begins granting new claims or paying for operational expenses.

“The RAF is bankrupt, and every person who goes to a fuel station is paying to keep this failing system afloat. This is making petrol and diesel far more expensive than they should be,” said Hunsinger.

“Clearly, the model is completely broken and must be reformed immediately.”

With a proposal to increase the RAF levy from R2.25 per litre to R3 per litre – a 33% increase – on the table, South Africans could soon pay even more towards the technically insolvent government entity.

“The DA believes that South Africans should pay for what they use, not for what the government wastes,” concluded Hunsinger.