702 South Africa
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Are South Africans paying too much for fuel? - 702
Outa has questioned why taxes and levies make up almost 70% of our fuel price. Refiloe Mpakanyane gets input from Warren Tucker.
Going nowhere slowly, but cheaply... That was the feeling when a local fuel price drop of over R2 a litre was announced during lockdown, because of a trade war and dwindling demand due to the Covid-19 pandemic. RELATED: Petrol price drops by more than R2 due to global impact of COVID-19 The Organisation Undoing Tax Abuse (Outa) called on government, once again, to halt its fuel levy increases going forward. Outa noted that despite a 28% drop in the Basic Fuel Price (BFP) from March to April, "the impact is a mere 10% reduction in the price of fuel from R15.84 in March to R13,96 in April." Refiloe Mpakanyane speaks to car expert Warren Tucker, who backs up the warning signals from Outa about taxes and levies making up the biggest component of the price of fuel in South Africa. R9.48 on that R13.96 is going straight to the government. Warren Tucker, Car expert We all understand the situation as far as taxes and levies and so on go, but like anything, it gets to a point where if you keep increasing it but when salaries are not keeping up with your increases, it becomes unaffordable. Warren Tucker, Car expert Those costs get pushed on to food, on to anything that uses fuel... to be delivered... farmers need it to plough their fields... all those costs get pushed forward to the consumer. Warren Tucker, Car expert As oil prices fluctuate, many motorists complain that the local cost does not drop accordingly but Tucker points out that fuel for the country is bought in advance. So, the next batch we purchase will be purchased at the cheaper rate and that price will then be brought through to the consumer. Warren Tucker, Car expert The problem here comes in with the taxes. Again we're stuck between a rock and a hard place because in the current situation... we've been downgraded to junk status... the country was in a technical recession... there's a job shortage... the government pays out so much in salaries... Yes, we pay taxes, but this is another avenue for government to get money from the public and you pay a levy on fuel. Warren Tucker, Car expert Tucker questions whether consumers are getting bang for their buck, saying it comes down to the administration of these monies. He believes we're owed some accountability, possibly in the form of a monthly report specifying what is paid out and what is generated. R9.48 in total [levies and taxes], I mean that is what we were paying in 2011 for a litre of fuel! Warren Tucker, Car expert These departments, are they efficient? I look at these taxes and you are punishing the poor here, again, because these taxes directly impact the cost of fuel, transport, food, so the basics are directly impacted. Warren Tucker, Car expert Listen to the conversation on Weekend Breakfast with Refiloe Mpakanyane: