MISA demands reduction in fuel levy amid rising petrol prices above 30 rand mark
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MISA demands reduction in fuel levy amid rising petrol prices above 30 rand mark

The Motor Industry Staff Association (MISA) is strongly urging the government to immediately reinstate the temporary reduction in the fuel levy, as petrol prices have exceeded the 30 rand per litre threshold, warning that rising transport costs are increasing pressure on households already facing financial difficulties.

This appeal came against the backdrop of the latest fuel price increases taking effect on Wednesday, October 7th. As a result, unleaded 95 petrol reached 30.25 rand per litre in coastal areas and 29.38 rand on the coast. The price of unleaded 93 petrol available in inland regions rose to 29.88 rand.

Diesel fuel prices are also reaching record highs: 50 ppm diesel increased by 3.24 rand per litre, and 500 ppm by 2.84 rand. At wholesale level, 50 ppm diesel will cost 32.80 rand in Gauteng before retail markup.

The recent price hikes are linked to sharp increases in international oil prices, largely driven by escalating tensions in the Middle East. MISA notes that this will have a particularly severe impact on workers who are already struggling to cover basic family living expenses.

MISA's Demands for Mitigation

MISA insists on a temporary reduction of the General Fuel Levy for both petrol and diesel by at least 3 rand per litre while international oil prices remain high. Furthermore, the association calls for targeted assistance for households using kerosene lamps and an urgent discussion of the structure of levies and markups within the National Economic Development and Labour Council (NEDLAC).

The association reminds that the government previously provided temporary fuel relief in April after organized trade unions secured intervention through NEDLAC. During that period, the General Fuel Levy was reduced by 3 rand per litre for petrol, and the diesel levy was set to zero. However, this relief has expired, and the current General Fuel Levy stands at 4.10 rand per litre for petrol and 3.93 rand for diesel.

Minister of Mineral Resources and Energy, Gweed Mantshe, had previously stated there were no immediate plans for further intervention, citing the volatility of petroleum product prices. Nevertheless, his department is reviewing the fuel pricing structure, which is due to be completed in March 2027.

Risk of Fuel Shock for Transport Costs

The latest price increase does not only affect motorists. South Africa's minivan taxi industry is already feeling pressure from higher operational costs related to fuel and other expenses. The South African National Taxi Council (SANTACO) reported this week that it is too early to talk about a potential fare increase, as the final decision rests with individual taxi associations following consultations with passengers.

SANTACO clarified that taxi associations have implemented only one fare increase since the start of the fuel price rise in March, while operators face increased costs for maintenance, administrative needs, and other business expenses. Previously, IOL reported that taxi passengers have already faced an increase of approximately 3–6 rand on some urban routes and 10–30 rand on some intercity trips this year.

The impact extends to the freight sector, where diesel fuel accounts for 35% to 55% of operating costs for road transport companies.

MISA emphasized that workers were already under severe financial strain before the latest fuel price hike. The association cited data from the Pietermaritzburg Economic Justice and Dignity Group, which showed that transport and electricity consumed 65.8% of the minimum wage even before accounting for food expenses. MISA stated that workers are 'crushed between fuel, electricity, and food expenses.'

The association urged the government to act before the latest fuel shock places additional strain on household budgets and transport costs. MISA also insists on providing assistance to kerosene-dependent households who were excluded from the mitigation measures introduced in April. Keyter added that 'the government has already proven that fuel relief is possible, and the conditions that justified it in April are even worse today.'

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Fuel price increase in October may exceed 3 rand due to record levels of gasoline and diesel fuel
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iol.co.za

Fuel price increase in October may exceed 3 rand due to record levels of gasoline and diesel fuel

Gasoline and diesel fuel prices are expected to reach record highs in October. According to the latest data from the Central Energy Fund, the price increase for 95 octane gasoline could range from 3.12 to 2.83 rand, and for 500 ppm diesel fuel—from 2.73 to 3.13 rand.

These projected increases will lead all types of fuel to set new price records. 95 octane gasoline is expected to reach approximately 29.17 rand on the coast and 30.04 rand in Gauteng, while 93 octane gasoline is predicted to rise to about 29.75 rand. The cost price of 500 ppm diesel fuel is forecast to reach approximately 30.96 rand for coastal residents and 31.84 rand for inland residents.

These forecasts are significantly higher than two weeks ago, when a gasoline increase of approximately 2.40 rand and a diesel increase of 2.04–2.40 rand were predicted. These increases follow a substantial rise in September, when both grades of gasoline increased by 1.34 rand per liter, and diesel fuel rose by 2.94–3.15 rand.

Additional pressure on fuel prices in October may come from the Slate Levy, which compensates oil companies for previous month's fluctuations, especially considering market volatility during that period.

Sharp global oil prices have caused significant lost revenue for both gasoline and diesel fuel. Brent crude reached a four-month high of $108 per barrel this month amid escalating tensions in the Middle East, specifically new attacks by Iranian militants on Saudi Arabian infrastructure.

Oil markets are fluctuating sharply due to the ongoing confrontation between the US and Iran, with the Strait of Hormuz remaining a key point of pressure. Initially, Brent rose by more than $4 per barrel on Monday after US President Donald Trump rejected an Iranian proposal that could have led to a seven-day ceasefire and the resumption of strategic waterway operations. Prices later fell slightly as Qatar-mediated talks offered hope for an agreement, but this optimism faded again, with Brent trading in the $106–$107 per barrel range on Tuesday.

The latest update from Iranian Foreign Minister Abbas Araghchi indicates that Tehran awaits an official response from the US to its proposal, while American officials have stated that Washington demands progress on nuclear issues within any agreement.

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