The FF Plus welcomes the drop in fuel prices effective as from Wednesday.
While it will reduce the pressure on consumers somewhat, government can still play a decisive role in lowering prices even further.
The Department of Mineral Resources and Energy is busy reviewing the composition of fuel prices on the whole. Various price components are based on assumptions, which may cost less in reality. The duration of transport by sea and waiting periods in the harbour are a few examples.
The FF Plus is of the opinion that these tariffs must not be fixed, but estimated.
Overcharges could be added to the existing stabilisation fund (slate levy) so that short-term price hikes can be absorbed.
The FF Plus has already voiced its opinion on the Road Accident Fund (RAF) levy, which must rather be replaced by a compulsory third-party insurance.
The most important contribution that government can make is to restore confidence in the South African economy.
It will improve the value of the Rand, which is one of the greatest contributing factors to high fuel prices.
The fuel levy remains highly controversial. The truth is that the South African state coffers are under immense pressure. And doing away with this levy will necessitate imposing another tax; something that will require thorough planning.
While there is the prospect that alternative sources of energy will offer relief in the long run, it seems that for now the onus to save on fuel still rests squarely on the shoulders of consumers themselves, and they can do so by driving less.
Another prospect to look forward to is the opportunity to elect a better government in 2024.
