Latest news with #AutomobileAssociation
The Citizen
26-05-2025
- Automotive
- The Citizen
AA calls for transparency about fuel price calculations, criticises fuel levy increase
The Automobile Association (AA) has raised concerns following Finance Minister Enoch Godongwana's announcement of an increase to the General Fuel Levy (GFL). The association has, among other things, called for transparency about how fuel prices are calculated in South Africa. The increase of 16 cents per litre for petrol and 15 cents per litre for diesel – will take effect from June is the first increase to the GFL in three years. According to the minister, it is the only new tax proposal for the 2025/26 financial year, citing inflationary pressures as the main reason. The AA cautioned the repeated turning to fuel levies to cover budget shortfalls is not sustainable, particularly when there is limited transparency about how the money is spent. The association renewed its call for a full review of South Africa's fuel pricing system. It is calling for: • A forensic audit of revenue from the GFL and Road Accident Fund (RAF) levy • Transparency on how the Department of Mineral Resources and Energy (DMRE) calculates fuel prices • Public engagement with civil society, labour and the transport sector • Consideration of alternative funding models that reduce the reliance on fuel levies The AA warned the increase would have far-reaching consequences for consumers and the broader economy. 'Fuel is a key input cost across all sectors. When fuel prices go up, transport and operational costs rise, which increases the price of goods and services,' the AA said in a statement. The entity added the levy increase comes when South Africans already face high food prices, steep electricity tariffs, elevated interest rates and persistent unemployment. Lower-income households, which spend the larger portion of their income on transport, are expected to be the hardest hit. With the new increase, the combined GFL and RAF levy will exceed R6 per litre in some regions. This will account for more than 30% of the pump price, even before adding the base fuel cost, distribution fees and retail markup. The AA said while the increase appears insignificant, it contributes to a growing financial burden on motorists, transportation-dependent businesses and industries. It believes South Africa must start a broader conversation on how to fund roads, public transport and infrastructure without placing the burden solely on drivers. 'The AA is ready to work with government and stakeholders to find fair, transparent and sustainable solutions that benefit both the economy and the people who drive it,' the association said. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
RNZ News
26-05-2025
- Automotive
- RNZ News
Petrol price wars see cost of fuel drop to $2.12 a litre
U-Go self-service stations in Auckland are offering 91 unleaded at $2.23 a litre. File photo. Photo: Marika Khabazi Petrol price battles in Auckland - sparked by a new no-frills service station on the market - have seen prices fall as low as $2.12 a litre in some suburbs, but do not expect the big savings to last for long, says a fuel price expert. There are now nine U-Go self-service stations in Auckland, offering 91 unleaded at $2.23 a litre, when the average is about $2.51. In one Auckland suburb, the cheaper petrol led to an opposition gas station dropping the price as low as $2.12 over the weekend. But Automobile Association principal policy advisor Terry Collins warned motorists that those kind of prices would not last for long. He said U-Go has entered the market by dropping the price down low in a similar way to supermarkets with their loss leaders, where certain products are sold at cost. "I think they've got very close to that margin and a neighbouring Mobil service station, rather than lose clients, responded by dropping their prices. "If it is around $2.12, I don't think it's sustainable, but look, long may it continue if they do want to get into short-term price wars like that. I just think under $2.20 is a really good price." He told Checkpoint that the stations would be trying things like larger discounts over the weekend to see what happens with their volume of sales. "They just want to get some new clientele, it's a pretty irresistible offer when you offer it at that price. "I couldn't imagine it happening every weekend, but we do know they are competitive, they will have specials, they will have discounts, and they're basically trying to maintain volume in tough economic conditions." While U-Go stations were only currently operational in Auckland, motorists could expect to see more of them throughout the country, as more Caltex stations are converted to the low-cost model. "What it's proven is that these low cost operators, consumers really like them, and now there is a definite niche in the market for them, we've got Allied, NPD, Gull, U-Go. They seem to be a growing segment of the market which provide cheaper fuel." Collins said oil prices on the international market had stabilised around $65 a barrel. "With the US administration causing a bit of mayhem in the market, there is more bang for buck with US dollars, and oil prices are cheaper around the $60-65 mark." Z Energy, which owns the U-Go brand, did not directly respond to questions about whether the lower price was here to stay, saying pricing was localised and could be different at each site, depending on factors like competition. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
The Citizen
25-05-2025
- Automotive
- The Citizen
Call for transparency on fuel levy allocation and spending
Call for transparency on fuel levy allocation and spending The looming increase in the fuel levy will have immediate and far-reaching consequences for consumers and the economy. This is according to the Automobile Association (AA) which says any increase in fuel 'inevitably drives up transport and operational costs, further intensifying inflation'. 'Fuel is a critical input cost across all sectors of the economy,' the AA said in a statement. ALSO READ: Fuel levy hike to hit consumers as road freight costs rise, warns transport association 'Lower-income households, which spend a greater share of their income on transport, will be disproportionately affected by this rise.' The association said while it understands the need to address fiscal pressures, 'turning to fuel levies to fill budget gaps is unsustainable'. They further called for transparency on how these funds are allocated and used. 'With the new adjustments in June, the combined cost of the GFL and the Road Accident Fund (RAF) Levy will exceed R6.00 per litre in some areas—accounting for more than 30% of the total pump price before adding the base fuel cost, distribution margins, and retail mark-ups,' the AA said. Don't have the ZO app? Download it to your Android or Apple device here: HAVE YOUR SAY Like our Facebook page and follow us on Twitter. For news straight to your phone invite us: WhatsApp – 060 784 2695 Instagram – zululand_observer At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
22-05-2025
- Automotive
- The Citizen
June fuel levy price shock incoming – Here's why you'll be paying more
Get ready to dig deeper into your pockets. Motorists will feel the pinch at the pumps as the government ends its three-year freeze on the fuel levy, a move aimed at helping plug the country's growing budget deficit. In the latest iteration of his 2025 budget speech on Wednesday, Godongwana announced the general fuel levy (GFL) would be increased 16c/l for petrol and 15c for diesel when the next monthly fuel price adjustment is made on June 4. Also read: Pretoria braces for four-day water outage — Is your area affected? It's one way Godongwana plans to fund the budget shortfall this financial year. He's also warning that further tax proposals are in the pipeline for 2026. As from next month, the general fuel levy on petrol will increase by 16 cents to R4.01 per litre. The levy on diesel will go up by 15 cents to R3.85 per litre. 'For the 2025/26 fiscal year, this is the only new tax proposal that I'm announcing. This is the first fuel levy increase in three years. Cut and join with the next line. Unfortunately, this tax measure alone will not close the fiscal gap over the medium term.' Meanwhile, the Automobile Association (AA) has slammed a new fuel levy hike, warning that the move will drive up transport costs, push food prices higher, and place more pressure on already struggling households. 'This levy adjustment comes at a time when South Africans are already contending with high food prices, elevated interest rates, increased electricity tariffs and persistently high unemployment. 'Fuel is a critical input cost across all sectors of the economy; any increase inevitably drives up transport and operational costs, further intensifying inflation.' It furthermore said the total tax taken from fuel, including the Road Accident Fund (RAF) levy, would now exceed R6 per litre in some areas, making up over 30% of the pump price before the actual fuel cost is even factored in. The AA calls for a forensic audit into how these funds are spent. It calls for a transparent overhaul of South Africa's fuel pricing system, including a forensic audit of fuel levy revenues, full disclosure of the pricing formula, stakeholder engagement, and exploration of alternative, less fuel-dependent funding models. Also read: Watch: Snowfall confirmed – Here's what it means for Pretoria Do you have more information about the story? Please send us an email to bennittb@ or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Eyewitness News
22-05-2025
- Automotive
- Eyewitness News
Automobile Association slams new fuel levy hike
JOHANNESBURG - The Automobile Association (AA) has slammed a new fuel levy hike, warning that the move will drive up transport costs, push food prices higher, and place more pressure on already struggling households. From 4 June, the general fuel levy goes up by 16 cents a litre for petrol, and 15 cents for diesel, marking the first increase in three years. In his latest version of the country's budget, Finance Minister Enoch Godongwana described it as a necessary move to deal with inflationary pressures. READ: Budget 3.0: Fuel levy will increase again in June, reveals Godongwana The AA said South Africans are already battling rising interest rates, electricity tariffs, and unemployment, and that adding to the cost of fuel now will have widespread and lasting consequences. The group warns that lower-income households who spend a larger share of their income on transport will be hardest hit. It also said the total tax take from fuel, including the Road Accident Fund (RAF) levy, would now exceed R6 per litre in some areas, making up over 30% of the pump price before the actual fuel cost is even factored in. Spokesperson Eleanor Mavimbela said the AA is calling for a forensic audit into how these funds are spent. "The AA renews its call for a comprehensive and transparent review of South Africa's fuel pricing model. We stand ready to engage with government and all stakeholders to develop sustainable, transparent, and equitable solutions that support both economic growth and the citizens who drive it." While the hike may seem modest, the AA said it points to a bigger problem, a tax system that hits motorists first, without a long-term plan for affordable transport or road funding.
