Running on fumes: Ramaphosa hints at petrol price relief
South African President Cyril Ramaphosa is considering interventions to mitigate the impact of rising fuel prices on citizens. While labor groups are calling for tax relief, the government warns that subsidies could divert funds from other essential services.
Why it matters
The struggle to balance fiscal responsibility with the cost-of-living crisis is a major economic challenge for the South African government.
President Cyril Ramaphosa says the National Treasury is “giving consideration” to potential interventions to ease the heavy cost-of-living burden forced on South Africans, mainly by the geopolitical turmoil and rising global oil prices.
Potential interventions that might be announced at the medium-term budget policy statement on Wednesday could include fuel levy options.
The price of petrol and diesel has leapt nearly 50% and 72% , respectively, since domestic prices started spiking in response to constrained global oil supply triggered by the US-Iran conflict. South Africa is particularly vulnerable, being a net importer.
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