‘We are giving serious consideration’: Ramaphosa weighs further fuel relief after R24bn subsidy

Fuel

Johannesburg – President Cyril Ramaphosa says the government is considering measures to ease the impact of rising fuel prices on consumers, warning that further intervention must be weighed against other spending priorities. 

Ramaphosa said South Africa was not alone in facing higher fuel costs, as global factors continued to put pressure on prices. 

“The issue of the fuel price is a problem globally. We’re not the only country that is affected by rising fuel prices,” he said. 

He added that the government was examining possible responses, following an earlier intervention that cost the state about R24 billion. 

“You must remember that when the fuel price rose a few months ago, government intervened and poured into a subsidy system, about 24 billion rand,” Ramaphosa said. 

“Now that is 24 billion rand that we are removing from other programs.” 

The president said the latest increase had prompted governments around the world to reconsider how best to respond, with South Africa also assessing its options. 

“Now that it’s gone up again, everyone in the world is giving consideration on what they should do. So are we,” he said. 

Government weighs cost of fuel relief 

Ramaphosa did not announce a new subsidy or specify what measures were being considered. His remarks indicate that the government is weighing possible relief for motorists and businesses against the cost to the public purse. 

Fuel prices affect household budgets and transport costs, with increases often putting additional pressure on food prices and the cost of moving goods. 

Any further government intervention would need to be considered alongside other spending commitments, given the president’s warning that fuel subsidies divert money from other programmes. 

Picture: Pixabay

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Compiled by Glaan Sibuyi

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