If gas levies and car finance requests are not met

If industry demands for fuel tax relief and car financing are not met, the National Taxi Alliance (NTA) has threatened to sue the government.

According to the group, recent increases in fuel costs have crippled the business, forcing it to pass on expenses to customers.

In an already stressed economy, sharp rises in fuel prices forced South Africans to dip deeper into their pockets earlier this month.

Petrol prices increased by Rand 1.46 per liter in 93 and 95, Rand 1.48 per liter of diesel and Rand 1.28 per liter of illuminating paraffin.

“It’s a big blow because it’s reduced our results and it’s getting extremely serious on a daily basis, so we have to do something about it,” NTA spokesman Theo Malele said. We’re going to sue them because we’ve found that when the government goes off the rails, the only way to get back on track is through the court system.

Another rise in gasoline prices is expected.

Meanwhile, the Automobile Association (AA) predicts that the price of petrol will rise to R24 per liter in April, while the price of diesel will rise to R23.60 per litre.

The main cause of these increases, according to the organization, is the evolution of international oil prices, which have reached record highs in recent weeks due to the conflict in Ukraine and fears over Russian oil supplies.

The Motor Industry Staff Association, a registered trade union for automotive retail staff, has since demanded that the government take this into account when assessing South Africa’s fuel price mechanism.

The group expresses concern about the rising price of gasoline and asks for clarification.

Lumkile Mondi of Wits University School of Economics and Finance speaks to SABC News about the escalating fuel prices in the country:

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