LETTER: Delay in fuel price deregulation ‘won’t do’
If petrol becomes as cheap as possible inflation will reverse
26 May 2023 - 13:38
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The AA says lower international product prices are the reason behind the predicted decreases.
Picture: FREDDY MAVUNDA
Deregulating the fuel price to allow for market competition should have happened from day zero (“Deregulating SA’s fuel price put on hold”, May 23). Now, a crucial change to ensure an essential good becomes even cheaper is being delayed further to 2024. This won’t do!
The DA is doing the right thing by submitting the Fuel Price Deregulation Bill. Unfortunately, knee-jerk partisan bias will, and probably already has, led to the minister and members of the governing party opposing the bill. The fact that the bill was meant to be open for public comment for 30 days and has been sitting at that stage for a year suggests wilful apathy.
While the minister twiddles his thumbs and sits on this piece of legislation, consumers are being forced to pay through the nose for price-fixed fuel that does not reflect the genuine market value of the product. While the Fuel Retailers Association says prices wouldn’t change much after deregulation, we should at least give it a try.
At the moment fuel is beholden to the whims of a state regulator with no genuine information to test what consumers can afford and what they are willing to pay. A genuine free market in fuel will come to reflect the true desires of consumers and retailers.
On top of deregulation all taxes should be dropped on petrol and the steps required to get it to the consumer. Remove as many layers of costs as possible. Petrol is an essential good that makes up the bedrock of a motorised economy.
If petrol becomes as cheap as possible inflation will reverse. As transport costs drop so will all other costs. It can only benefit South Africans.
Nicholas Woode-Smith Cape Town
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Delay in fuel price deregulation ‘won’t do’
If petrol becomes as cheap as possible inflation will reverse
Deregulating the fuel price to allow for market competition should have happened from day zero (“Deregulating SA’s fuel price put on hold”, May 23). Now, a crucial change to ensure an essential good becomes even cheaper is being delayed further to 2024. This won’t do!
The DA is doing the right thing by submitting the Fuel Price Deregulation Bill. Unfortunately, knee-jerk partisan bias will, and probably already has, led to the minister and members of the governing party opposing the bill. The fact that the bill was meant to be open for public comment for 30 days and has been sitting at that stage for a year suggests wilful apathy.
While the minister twiddles his thumbs and sits on this piece of legislation, consumers are being forced to pay through the nose for price-fixed fuel that does not reflect the genuine market value of the product. While the Fuel Retailers Association says prices wouldn’t change much after deregulation, we should at least give it a try.
At the moment fuel is beholden to the whims of a state regulator with no genuine information to test what consumers can afford and what they are willing to pay. A genuine free market in fuel will come to reflect the true desires of consumers and retailers.
On top of deregulation all taxes should be dropped on petrol and the steps required to get it to the consumer. Remove as many layers of costs as possible. Petrol is an essential good that makes up the bedrock of a motorised economy.
If petrol becomes as cheap as possible inflation will reverse. As transport costs drop so will all other costs. It can only benefit South Africans.
Nicholas Woode-Smith
Cape Town
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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