Extension of fuel levy cut good news for motorists

Government's extension of the temporary reduction in the fuel levy for another two months is good news for motorists and consumers as things could have been worse.

Petrol reached yet another record high of R24.17 for 95 unleaded and R23.94 for 93 unleaded at midnight after the announcement by the department of mineral resources and energy (DMRE).

Diesel and illuminating paraffin increased by R1.10/litre and R1.56/litre, respectively.

The National Treasury and DMRE announced in a joint media statement relief of R1.50 per litre for the first month, from June 1 to July 6, and then a downward adjustment to the relief for the second month to 75c per litre from July 7 to August 2.

The temporary relief will be withdrawn from August 3.

Automobile Association spokesperson Layton Beard said: “The extension is a relief for everyone. Things could have been worse if the government did not extend the R1.50 relief.”

He said it was too early to say whether there would be another increase or decrease in fuel prices in the short term.

“There are a lot of factors to consider, such as the international oil price and the rand to dollar exchange rate. These figures are calculated on a month-to-month basis.”

Beard said the retail petrol price includes costs such as storage, distribution, custom and excise duty, and the fuel, slate, petroleum products and RAF levies.

He said the basic petrol price is R15.07 but it increases because of these products. 

A motorist who spoke to Sowetan on condition of anonymity said last year he had to quit his seven-year job as a scholar transport driver due to past petrol price hikes.

“The petrol price will be increased and I would raise my transport fee. Parents would complain and refuse to pay and take their children to other drivers who were not raising their prices,” he said.

Lazarus Mashaba, 41, who runs a hair salon in Orlando East, Soweto, said the street he lives on has not had electricity for almost three months and he has been using a generator to keep the salon afloat.

The salon has been running since 2000 and has two employees. He pays R1,000 rent.

Mashaba said in February he hired a generator, which he pays R1,000 a month for it. He said he spends R500 on 20 litres of petrol a day to keep the generator running.

He said he gets about 10 customers a day from which he makes R500.

Before the power cuts he would get at most 40 customers a day, from which he would make between R2,000 and R3,000.

Mashaba said because he is now making less money, he has been forced to cut his workers' salaries in half and has not been able to buy all the equipment he needs to run his salon.

“Sometimes I cannot buy sprays, creams, combs and hair cutting machines. The customers would come and I would cut their hair, wash it and do the hairstyle they preferred. Now it is no longer the same. I am working so that I can eat. I need to buy winter clothes for my children. This is a difficult time,” said Mashaba.

He said on one occasion in April he struggled to pay the rent of R1,500 for the place where he lives.

“My landlord is very understanding. She knows that I always pay my rent on time. When I could not pay rent she would give me a grace period of 10 days to pay it,” he said.

When Sowetan visited his salon on Tuesday, there was no power and he was using the generator.