Petrol price increases and reducing the costs of transportation

It is very concerning to notice the continuous increase of petrol prices since the beginning of last year with a further increase as announced by the Central Energy Fund.

The fact of the matter is that these price increases will affect the price of goods across the country. South Africans, already struggling with rapidly rising living costs, will be forced to pay higher taxi fares, and increased transportation costs will push up the cost of food over time.

Government must step up and help to ease the burden. Over the last ten years, the fuel price has, on average, increased by 11% per year. This is far above the official inflation rate which has hovered around 6%.

There are two key ways in which Government can smooth out the impact of fuel price increases over time; and to potentially lower the price of fuel.  
• A comprehensive review of all levies and taxes placed on the price of fuel to determine which ones, in which quantity, continue to be justified in the light of the substantial impact they have on the economy.
 • The Central Energy Fund must re-examine the formula it uses to calculate the basic fuel price. Currently, the formula is overly-sensitive to short term fluctuations in the price of oil and the rand/dollar exchange rate. The Department of Energy has already conceded that such a review is necessary, but hasn’t initiated the process.

I believe that, given the significant economic pressure on our people, this formula must be reviewed as a matter of utmost urgency. The Minister of Energy Affairs must consider these submissions. It is important that Government understand just how damaging fuel price hikes are to South Africans and to our economy. I believe that Government should consider these reviews in order to contain the increase in the cost of living, to help South Africans maintain and improve their standard of living.
 
In light of the significant fuel price hike, the City of Cape Town has urged all motorists to consider their transport and mobility habits and see where these can be changed to minimise the impact of the increase. The implementation of the MyCiti Bus Rapid Transport (BRT) service throughout the city now becomes more crucial than ever before in order to serve the public transport needs of travellers.

Sadly, in Buffalo City the BRT rollout has stalled and hasn’t gone much further than the initial planning phase. Budgets continue to roll over every year and this lack of delivery is contributing to increased transport costs for residents and added congestions to the road system as public transport is not a viable alternative to many.

People should be encouraged to investigate all of the public transport options close to their homes, and start taking the train or buses wherever possible – for commuting to work and school, or visit friends and family. 
 
Let’s do all that we can to grow a public transport culture, not just  in Cape Town but in the rest of South Africa as well. It’s in the best interest of your pocket and the environment!