The Automobile Association AA of South Africa has welcomed the decision by President Cyril Ramaphosa to conduct a fuel price review to combat rising fuel costs.
During his Opening of Parliament address, Ramaphosa said the Government of National Unity GNU will look at adding extra goods to the basket of essential food items that are exempt from VAT Value Added Tax.
This announcement, in addition to the review of the fuel price, validates the calls made by the AA to mitigate the ever-rising fuel costs which add pressure to consumers monthly, it said in a statement .
As far back as 2019 the AA called for a review of the fuel pricing structure, and an audit of all the components that comprise the fuel price. We noted at the time that fuel prices impact all South Africans and that an assessment of the fuel pricing formula is necessary to determine whether all components are properly calculated and still necessary on the current formula, the AA said.
The AA said that it has made the call for the fuel price review in the interests of South African consumers but little has been done to address the issue or initiate a review.
