DA proposes driving insurance scheme

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A potential measure to alleviate the country’s record-high petrol prices was proposed by the Democratic Alliance (DA). This plan involves the introduction of a driving insurance scheme. 

Democratic Alliance details its proposed insurance scheme

The DA explained that the scheme will allow motorists who are able to submit proof of comprehensive third-party insurance, to receive a tax rebate for the R2.18 per litre Road Accident Fund Levy when they submit their annual tax returns. 

The scheme was presented by the party prior to conversations in parliament regarding the country’s petrol price increases. 

Opposition party wants the fuel levy removed

The DA has additionally pleaded for the removal of the general fuel levy as well as an amendment of the Petroleum Products Act permitting the deregulation of the fuel sector.

South Africa’s Fuel Retailers Association proposed the termination of the country’s Road Accident Fund (RAF) and the implementation of a mandatory insurance scheme to parliament in March 2022.

The Fuel Retailers Association acts as an independent employers organisation. The organisation represents the country’s fuel service station owners.

While South Africa’s Road Accident Fund offers protections to road accident victims, the costs of the fund are mainly covered through a levy attached to the basic fuel price. The current levy sits at R2.18 per litre following the National Treasury’s decision not to it in the 2022 financial year, reports BusinessTech.

The petrol price is on the rise and the DA came up with a potential measure to alleviate the costs for locals. Photo: Sean MacEntee / Flickr

July fuel price: South Africans could be digging deeper in their pockets

In other news about fuel prices, it was previously reported that mid-month data suggests that the price of fuel could continue to rise at the beginning of next month. The Central Energy Fund released unaudited data that showed an under-recovery for petrol.

This under-recovery translates to an increase of approximately R2 per litre for petrol. That is if the current oil price and currency trends continue in the same way until the end of June. 

Diesel could rise by around R1.30 but the daily fuel price statistics suggest this amount could increase. This is just the tip of the iceberg for many relying on public transport and vehicles. Read the full story here.

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