South Africa’s economy is struggling and desperate for any sort of reprieve from the lashing strong winds brought on by an economic storm that threatens to throw the world into a recession. In today’s opinions, we bring you commentary exploring the surging fuel prices that continue to hit South Africa month after month.
Fuel review and tackling graft key to mitigating rising fuel costs – Business Day
Chief executive of the Automobile Association of SA Willem Groenewald writes that a review of South Africa’s fuel price is “essential and long overdue”. Groenewald cites sources who argue that the basic fuel price has not been regularly reviewed and adjusted as market conditions change.
He notes, in the research he cites, that if the basic fuel price (the basic cost of fuel before taxes and associated costs are included) does not accurately reflect the import parity price (the price at which SA pays to import fuel) then there is cause for concern.
Groenewald says a review of SA’s fuel price should be conducted against the backdrop of major governance challenges that include corruption and revenue distribution.
The AA chief delves further into what makes up SA’s fuel price and how revenue from taxes on the fuel is spent and says citizens correctly have a right to criticise the way revenue is spent. Read more here.
What’s driving the surge in South Africa’s fuel price – The Conversation
Jannie Rossouw, visiting professor at Wits Business School, explores one of the overarching reasons for a fuel price increase in South Africa, which has to do with the price of crude oil.
The driving factor to surging crude oil prices is the war waged on Ukraine by Russia argues Rossouw and writes “(the) expectation is that the crude oil price will remain at an elevated level for the duration of the war.”
Rossouw writes the increase in the international oil price adds pressure to the global market and leads to a “higher landed cost for fuel in South Africa.”
“The landed cost in US dollars is converted to rand at the prevailing exchange rate. Any weakness in the rand exchange rate against the US dollar therefore results in a higher domestic petrol price,” writes Rossouw. Read more here.
Here’s a round-up of what else we’re reading:
ANC self-mutilation & needed DA shake-up – why it may be open season for new players – Qaanitah Hunter, News24 (for subscribers)
We all want political change. But how do we get it? – Carol Paton, Fin24 (for subscribers)
It’s not a Watergate moment, with the politburo waiting in the wings – Tom Eaton, Business Day (for subscribers)
Here be dragons: Sars win on underpriced clothing affirms the integrity of the tax system – Dennis Davis, Business Day (for subscribers)
No apologies as the government fails the poor again – Duma Gqubule, Business Day (for subscribers)
Whether or not Cyril is preparing to exit, he owes us an explanation – Editorial, Sunday Times Daily (for subscribers)
How Zondo let McKinsey off the hook – Eusebius McKaiser, Sunday Times Daily (for subscribers)
It’s now or never for the National Prosecuting Authority – Stephen Grootes, Daily Maverick
SA’s local municipalities need a total overhaul – Sydney Majoko, The Citizen (for subscribers)
