What will the DA and Outa fuel levy protest actually achieve?

The Democratic Alliance (DA), Outa and several taxi associations are preparing to march in Pretoria to call on government to act against rising fuel costs and VAT.

READ: Outa calls on government to slash petrol price, reduce fuel levy by R1

They're want government to reduce the Road Accident Fund and general fuel levies by R1 per litre or 20%, which they believe will allow the price of petrol to drop to below R15 a litre.

Independent economic analyst Professor Bonke Dumisa says he is happy that South Africans are becoming more active when it comes to consumerism, but isn't convinced the planned action will have any significant impact on fuel costs.

Unfortunately, on this whole issue of the petrol price increase, I think there is more of political opportunism than looking for real solutions.

Professor Bonke Dumisa, Independent economic analyst

When we look at the price of petrol, it is not something that government wakes up in the morning and says the price should be here. There is a set formula which is used.

Professor Bonke Dumisa, Independent economic analyst

We know how much people go out of their way to claim from the Road Accident Fund. So if you say you're going to take R1 from that fund, where with the other R1 come from to fill that gap?

Professor Bonke Dumisa, Independent economic analyst

Listen below to the full interview...


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