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Cape Chamber: Proposed fuel levy unfair on the poor

Energy Minister Jeff Radebe announced consumers will have to fork out 72 cents more for 95 octane while 93 octane is going up 69 cents.

Picture: EWN.

CAPE TOWN – The Cape Chamber of Commerce and Industry says the proposed fuel levy for the Western Cape will be unfair and hard on the poor.

The chamber says the idea is becoming an outdated concept.

Finance MEC Ivan Meyer said in April 2017, the Cabinet mandated the department to do a feasibility study on the fuel tax. They are now updating the research.

Meyer says the process will take about five to six years before being implemented in the province.

President of the Chamber, Janine Myburgh says the idea was proposed and approved by Treasury 13 years ago but was never implemented.

“In the present circumstances it would be unfair and hard on the poor. Cars have changed a lot in the last 13 years. Modern diesel and turbo charge vehicles have become a great deal and more fuel efficient, but the poor mainly drive older cars which are not fuel efficient. That means they will be paying more than the people who can afford new cars.”

Energy Minister Jeff Radebe has announced that from next Wednesday, consumers will have to fork out 72 cents more for 95 octane while 93 octane is going up 69 cents.

One of the main reasons for the fuel price adjustments are the increase in the Fuel and Road Accident Fund Levies as announced by the Minister of Finance in his Budget Speech last month.