Question NW187 to the Minister of Mineral and Petroleum Resources Mr
30 August 2024 - NW187
Reddy, Mr VG to ask the Minister of Mineral and Petroleum Resources Mr
(1) Whether, considering the ongoing rise in fuel prices and its significant impact on the socio-economic conditions of the Republic, particularly affecting the poor and vulnerable communities, and noting that the fuel taxes and levies imposed on fuel prices in the Republic are the highest in Africa (details furnished), his department has taken any steps to reduce fuel taxes and levies; if not, why not; if so, what are the relevant details; (2) whether his department is considering the nationalisation of Sasol Limited in order to become a state-owned entity once more, thereby enabling South Africans to benefit from drastically reduced fuel prices, as Sasol Limited produces fuel from coal at a substantially lower cost than companies that import crude oil; if not, why not; if so, what are the relevant details? NW215E
Reply:
- The Government is concerned about the contribution of administered prices to the high cost of living. As an importer of both crude oil and refined products, South Africa is also exposed to the movement of crude oil prices. The Fuel Levies and Road Accident Fund (RAF) on both diesel and petrol are administered by the Minister of Finance and this Department implements levies which are voted for in parliament. A Ministerial Task Team to review the fuel pricing regime has been established and it must be given a chance to do its work.
- No. The department is not considering the nationalisation of Sasol Limited but is focusing on the operationalisation of the South African National Petroleum Company.