An earlier fuel subsidy diverted $1.46 billion from other government programs, Cyril Ramaphosa has said
Further relief from record fuel prices could force South Africa to divert money from other government programs, President Cyril Ramaphosa has warned as his administration considers a new intervention to ease pressure on households.
Speaking to journalists on the sidelines of the Bana Pele ECD Summit in Sandton on Monday, Ramaphosa said rising fuel prices were a global problem. ”The issue of the fuel price is a problem globally. We’re not the only country that is affected by rising fuel prices and of course there are various responses by various entities and governments and businesses and we are giving serious consideration on what needs to be done,” the president said.
Ramaphosa noted the government had previously intervened when fuel prices increased, spending about 24 billion rand (about $1.46 billion) on a subsidy system.“You must remember that when the fuel price rose a few months ago, government intervened and poured into a subsidy system about 24 billion rand,” he said.
READ MORE: South Africans warned of record fuel prices
The comments come as motorists face record fuel prices following the increases that took effect on October 7. Inland 95-octane petrol rose by R3.33 a litre to R30.25, while 93-octane petrol increased by R3.12 to R29.88. Diesel prices also rose sharply.
The increases came after the temporary fuel-levy relief introduced between April and June was phased out. The relief reduced the general fuel levy by R3 a litre on petrol and by up to R3.93 a litre on diesel at its peak. Parliament has since advanced a proposed R10 billion fuel-relief allocation for debate in the National Assembly. However, the proposal does not guarantee an immediate reduction in petrol and diesel prices.
Read more Beyond Hormuz: This oil giant is plagued by a curseAgainst this backdrop, Ramaphosa cautioned that government intervention came at a cost to other priorities. ”Now that is R24 billion that we are removing from other programmes,” he stressed.
With fuel prices rising again, he noted that the government was considering what further action could be taken. ”Now that it’s gone up again, everyone in the world is giving consideration on what they should do, so are we,” the president said.
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