The Economic Freedom Fighters (EFF) are considering a national shutdown as a measured response to the record-breaking increase in petrol prices in South Africa.
EFF warns of national shutdown as response to petrol price hike
In a statement, the political party rubbished the government’s claim that the June petrol price increase was avoidable as another instance of the ANC-led government’s failure to account for its collective incompetence.
In the 11th-hour, the Department of Mineral and Energy announced, on Tuesday, its decision to extend its R1,50 general fuel levy relief for another two months, effectively lowering the increased petrol prices for June 2022 which were touted to break past the R25 per litre mark.
Even with the relief, motorists still felt the pinch at the pumps. According to the EFF, the government’s assertion that the record-breaking fuel hike was unavoidable is simply not true.
“Reasons such as crude oil prices and the rand/dollar exchange rate are a result of cabinet collective incompetence, corruption, and mismanagement of the economy, and has constantly failed to protect and safeguard its citizens in a time of uncertainty around the world,” the party exclaimed in a statement.
In a letter submitted to the National Assembly by Finance Minister Enoch Godongwana, the National Treasury proposed a two-month extension on the general fuel levy relief which aims to:
- reduce R1,50 from the R3,93 general fuel levy from 1 June to 6 July 2022; and
- thereafter, apply a downward adjustment to the GFL reduction of 75c from 7 July and 2 August 2022.
While the relief extension will impact the price of petrol going forward, external factors such as the Russia-Ukraine war and the performance of the South African Rand in currency markets, coupled with margins, taxes and other levies applied internally, may cause further strain at the pump in coming months.
The EFF, on the other hand, is considering a national shutdown “until the price of petrol is reduced.”
“National Treasury, together with the Minister of Energy, ought to introduce immediate measures to lower fuel and petrol prices,” the party warned.