Broken Promises and Soaring Prices: The Truth Behind South Africa’s Fuel Debacle

After months of speculation, South Africans are confronted with another fuel price hike, despite Resources Minister Gwede Mantashe’s assurances that prices could be slashed by up to 30%. This latest development leaves many wondering whether these promises were ever credible. The unrelenting rise in fuel prices continues to undermine the economy, and the public’s patience is wearing thin.
At the heart of the fuel price debate is Mantashe’s suggestion that removing the general fuel levy and the Road Accident Fund levy could lower petrol prices to R14 per litre. These levies contribute R6.40 to the price per litre, making up a substantial portion of the overall cost (BusinessTech). However, while this sounds promising, removing these levies would cost the government upwards of R150 billion annually—revenue it heavily relies on (MyBroadband)
Adding insult to injury, the latest price increases came into effect in early October, bringing the cost of petrol to over R24 per litre. Many South Africans feel that this continual rise, often justified by global market pressures and a weak rand, proves the government has little control over local fuel prices. (The Citizen).
Throughout 2023 and into 2024, fuel prices fluctuated wildly. These fluctuations have instilled a sense of frustration among citizens, who feel they are being misled by temporary drops, only to face even steeper increases shortly afterwards (MyBroadband). Mantashe’s proposed price reduction appears more like a political gesture than a viable plan, given the state’s dependence on fuel levies to fill its coffers.
The reality is stark: South Africa’s government is unlikely to offer the relief it has promised, as the economic constraints of lost tax revenue and rising global oil prices make such reductions unattainable. Mantashe’s promise of R14 per litre of petrol may go down in history as another broken pledge in the long list of unfulfilled political promises.