According to SABC News, Bobby Ramagwede, CEO of the Automobile Association of South Africa (AA), criticised the government for failing to protect South Africans from fuel price hikes.
“The AA is further disappointed by the fact that the government has not really done much to shelter both motorists and general consumers from these shocks,” said Ramagwede.
He added that the AA has calculated the fuel price includes around R7 or R8 in tax.
“We’ve done the math, and there’s a good R7/R8 of taxes baked into the fuel price that are unrelated to the fuel commodity that the government can actually afford to set aside until at least a point where the conflict has left the global oil price in a more stable condition.”
Meanwhile, Parliament’s Select Committee on Appropriations has adopted the Special Appropriation Bill to help stabilise fuel prices.
The Bill authorises the National Treasury to withdraw R10bn from the National Revenue Fund and allocate it to the Department of Mineral and Petroleum Resources.
This will help cover fuel costs and protect consumers from fuel price volatility arising from the ongoing conflict between the US, Israel, and Iran.
Reuters reports that the conflict in West Asia continues to support Brent crude above $100 a barrel.
The Houthis claimed responsibility for a strike on Riyadh’s international airport that killed 13 people and wounded more than 300, while Saudi authorities reported injuries in a new attack on the airport on Sunday.
US President Donald Trump said the United States was considering joining Saudi strikes on the Houthis, in a spillover from the wider war with Iran that the US and Israel launched in February.
More attacks on tankers sailing through the Strait of Hormuz have also been reported this month, threatening the recovery in the region’s crude exports seen in September.
The United Kingdom Maritime Trade Operations reported over the weekend that a tanker was struck by a drone near Sohar anchorage, Oman, and another was damaged by an unknown projectile in the Strait of Hormuz.
Goldman Sachs raised its December Brent crude price forecast to $90 a barrel, up from $85, analysts led by Daan Struyven said in a note.
“We maintain our base case that continued adaptation of supply will eventually reduce crude oil prices, while potential renewed escalation still poses significant net upside risk,” the analysts said.
“We forecast WTI prices to average $81 in December 2026 and $73 in 2027,” they added.
