BL Premium reports that the National Treasury and the Department of Mineral Resources & Energy met at the weekend to discuss options regarding fuel prices, which have been hitting highs and threatening to render SA’s fragile economy uncompetitive.
Finance Minister Enoch Godongwana indicated last week that the SA government was looking into a lot of proposals to mitigate the situation. “Everyone understands that an increase in petrol prices is a blunt instrument — it cuts across food prices. It is just really going to raise the cost of living in the economy and therefore something must be done,” he stated. Godongwana said the content and format of the proposal to alleviate rising fuel prices was a matter the National Treasury and the DMRE would announce this week. At the weekend, the Treasury team met DMRE Minister Gwede Mantashe “to fine-tune the proposal”. Godongwanga said: “I don’t want to say we will be saved; we are looking into it.” Meantime, the two months of fuel price relief in the form of a reduction in the general fuel levy by R1.50/l comes to an end at the end of May. This year has been tumultuous globally, with supply and demand imbalances made worse by geopolitical tensions, rising inflation and slowing economic growth amid limited fiscal space. While heightened inflation is more evident in developed markets, which provided considerable policy stimulus during the Covid-19 lockdown, emerging markets like SA have not gone unscathed.
- Read the full original of the report in the above regard by Thuletho Zwane at BusinessLive (subscriber access only)
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