The former Department of Mineral Resources and Energy (DMRE) has failed to review South Africa’s fuel-pricing methodology since the process to do so was announced in 2022, says the Motor Industry Staff Association (Misa).

In the 2022 Budget Review document, National Treasury said it and the DMRE would review the methodology to determine the fuel price.

However, nothing has materialised to date, says Misa.

Under the new government formed in July, the DMRE has since been split into a Department of Mineral and Petroleum Resources and a Department of Electricity and Energy.

Misa says it was invited to participate in the promised review committee in July 2022, at which point the process failed to progress any further.

“In the meantime, South Africans are continuing to pay sky-high fuel levies and taxes, just because it is an easy source of income to collect,” says Misa operations CEO Martlé Keyter.

As from May 1, R6.40 a litre goes towards some form of tax or levy when buying petrol. This is predominantly made up of the fuel tax – roughly 18% of current prices – and the Road Accident Fund, at around 10% of current prices, she notes,

Keyter says government can expect to pocket around R89-billion from the general fuel levy in the current financial year, adding to the more than R730-billion generated in the past decade.

Misa says it approached government on the fuel-price structure more than two years ago, as it believed increasing fuel prices were contributing to consumers’ ongoing economic struggles.

Misa says its continues to believe that an overall lower fuel price should aid in positive economic growth, while also combating unemployment.

The union is concerned that the move to split the DMRE could delay any potential review process further.

Misa says it is unclear under which department the review of the fuel-pricing methodology will fall now.

“Our dire economic situation requires swift responses,” says Keyter.

“We can’t waste another two years. South Africans need to know if the high fuel levies and taxes can be justified.

“We want to be a part of the solutions to find another source of income for government, other than fuel.”