{"id":568290,"date":"2022-03-15T10:38:42","date_gmt":"2022-03-15T08:38:42","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=568290"},"modified":"2022-03-15T10:38:42","modified_gmt":"2022-03-15T08:38:42","slug":"treasurys-official-proposals-to-lower-south-africas-petrol-prices-including-a-fuel-price-cap","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/energy\/568290\/treasurys-official-proposals-to-lower-south-africas-petrol-prices-including-a-fuel-price-cap\/","title":{"rendered":"Treasury&#8217;s official proposals to lower South Africa&#8217;s petrol prices &#8211; including a fuel price cap"},"content":{"rendered":"<p>The National Treasury has detailed its official proposals to tackle South Africa&#8217;s record-high petrol prices.<\/p>\n<p>In a presentation to parliament on Tuesday (15 March), Treasury said that it had narrowed down its proposals to four options, with a combination of these proposals likely to be the most effective:<\/p>\n<ul>\n<li>A potential one-off reduction of between 3 cents &#8211; 18 cents\/litre as part of a recommended Basic Fuel Price review which could be introduced immediately;<\/li>\n<\/ul>\n<ul>\n<li>A review of the Regulatory Accounting System (RAS) methodology for petrol could result in a significant decrease of R1.03 cents\/litre by 2028. However, this will take significantly longer to implement than other measures and investigations need to take place to fully understand the changes that can be implemented.<\/li>\n<\/ul>\n<ul>\n<li>Revising the Road Accident Fund Levy to make up a lower total of the current Basic Fuel Price. Currently, National Treasury regulated levies account for 30% of the total pump price. Treasury said a reduction in the RAF levy should be possible as the Road Accident Fund sees operational changes and improvements over the next three years.<\/li>\n<\/ul>\n<ul>\n<li>Consideration should be given to a fuel price cap, although this will also require significant investigations will be required first.<\/li>\n<\/ul>\n<p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/J67bX4irflE\" width=\"640\" height=\"430\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>Treasury&#8217;s position on a Basic Fuel Price review conflict somewhat with a preceding <strong><a href=\"https:\/\/businesstech.co.za\/news\/energy\/568232\/government-warns-of-possible-petrol-restrictions-in-south-africa\/\" target=\"_blank\" rel=\"noopener\">presentation<\/a> <\/strong>by the Department of Mineral Resources and Energy.<\/p>\n<p>In its presentation, the department said that it did not think a fuel price review would be as successful as offering transport and food subsidies.<\/p>\n<p>It also proposed other interventions such as encouraging people to work from home &#8211; and in a worst-case scenario &#8211; limiting the fuel that motorists are given at petrol stations.<\/p>\n<p>It reasoned that the record-high petrol price was largely an international issue, and was being driven by geopolitical factors outside of South Africa&#8217;s control, meaning a fuel price review would largely be ineffective.<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/energy\/568232\/government-warns-of-possible-petrol-restrictions-in-south-africa\/\" target=\"_blank\" rel=\"noopener\">Government warns of possible petrol restrictions in South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The National Treasury has detailed its official proposals to tackle South Africa&#8217;s record-high petrol prices.<\/p>\n","protected":false},"author":10,"featured_media":536274,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[26],"class_list":["post-568290","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/568290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=568290"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/568290\/revisions"}],"predecessor-version":[{"id":568296,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/568290\/revisions\/568296"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/536274"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=568290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=568290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=568290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}