South Africa forms committee to tackle fuel prices amid Middle East conflict

Finance Minister Enoch Godongwana states that the Cabinet committee responsible for examining the impact of the Middle East conflict will provide suitable recommendations to the government on how to address the increasing fuel costs. On Wednesday, Finance Minister Enoch Godongwana announced that the Cabinet had formed a committee to assess the effects of the ongoing Middle East conflict, especially with regard to growing fuel prices. Inquiries from EFF MP Sam Matiase, who voiced concerns that the nation would be economically vulnerable in the face of growing geopolitical tensions, led to this decision.

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.