AA welcomes temporary reduction of fuel levy


The Automobile Association (AA) has welcomed the temporary reduction of the general fuel levy from R4.10 per litre to R 1.10 per litre.

The reduction, which will last until May 5, is government’s attempt to shield motorists from a more severe fuel price increase.

The rising fuel prices are caused by the ongoing conflict in the Middle East.

It is expected to cost the fiscus around R6 billion.

AA CEO Bobby Ramagwede says, “As the AA, we will continue to lobby for the relief to be protracted. One has got to take into consideration that the government’s biggest problem is not revenue collection but rather expense management.”

Ramagwede says, “R6 billion a month is a number that could easily disappear within the fiscus, so asking for that to be in the form of relief to consumers and the broader economy at large is a really small request.”

VIDEO | Some Mbombela fuel stations run dry: