New Cabinet committee to evaluate fuel price impact amid Middle East conflict

Finance Minister Enoch Godongwana says the Cabinet committee tasked to look at the impact of the Middle East conflict will make appropriate recommendations to the government on how to deal with the rising fuel costs. Finance Minister Enoch Godongwana on Thursday revealed that Cabinet has established a committee tasked with evaluating the ramifications of the ongoing conflict in the Middle East, particularly regarding rising fuel costs. This decision follows inquiries from EFF MP Sam Matiase, who expressed fears that the country would be economically vulnerable amid the escalating geopolitical tensions.

During a question-and-answer session in the National Assembly, Matiase challenged Godongwana on whether he would reconsider his position on the controversial fuel levy increase, especially after a Western Cape High Court ruling that barred a VAT hike. “How does your government intend to shield poor households and the economy from potentially severe consequences?” Matiase asked. Responding, Godongwana assured the assembly that the newly formed committee would present recommendations to the government regarding the structure of fuel pricing.

“This is not a decision that will be made by the (me) alone.” This committee, which includesMineral Resources and Petroleum Minister Gwede Mantasheand Electricity and Energy Minister Kgosientsho Ramokgopa, is expected to recommend to government how to deal with the rising fuel costs. His statement came after he earlier refused to answer a question from DA MP Mark Burke Burke stated that while the Western Cape High Court had ruled that Godongwana did not have the power to unilaterally increase VAT, subsequent and related court rulings indicated that he has the power to unilaterally and suddenly decrease or increase the fuel levy. He also said the DA, a partner in the Government of National Unity, has proposed a funded model on how to avoid the catastrophiccosts of living. “Will you use your court-approved powers to decrease the fuel levy by 50% before prices go up next week?’ asked Burke.