Fully deregulating fuel price a pipe dream with a double-edged sword

South African consumers have been given some cushioning from rapidly increasingly fuel prices by a recent announcement from Finance Minister Enoch Godongwana. He said in Parliament that Treasury would cut its collection on the General Fuel Levy (GFL) by R1.50 in April and May 2022. The shortfall of over R6bn to the fiscus, as a result of this temporary reprieve, will be made up by the sale of some of South Africa's strategic oil reserves. Cobus Lubbe, who spent over 23 years in the oil and gas industry at both Engen and Shell, says while recent comments from Godongwana that government plans to fully deregulate the fuel industry should be welcomed, we need to be realistic about what that means for the economy. Learn more about your ad choices. Visit megaphone.fm/adchoices