Tag: Gavin Kelly

We note the decision by Cabinet to “finally close the historical e-toll debt”. This decision includes both the “close-out” of historical debt and the “resolution of all outstanding litigation matters”. The Minister of Transport has “welcomed the Cabinet decision”. This raises a question. Did the Department of Transport not drive this process from the outset?

Global fuel market dynamics play an enormous role in determining fuel prices. Global oil price volatility strongly influences these dynamics. Supply and demand remain highly relevant. They influence what the global market will pay for a barrel of oil. They also shape perceptions of shortages. In turn, these perceptions can trigger buying sprees that push prices higher.

We note that the government has dropped the planned additional R20 billion from individual taxpayers. We welcome that decision. However, this outcome stems from the commodities boom that has saved our necks. What will happen in 2027 if that commodities boon disappears? The question remains whether that boon will continue to flow into the deep, dark pit of government spending.

We note the decision by the Minister of Finance to increase the fuel levy by 4% - 16 cents per litre for petrol and 15 cents for diesel. This increase will directly affect consumers. Transporters cannot absorb these additional costs without harming their bottom line and threatening business sustainability.