Though motorists were relieved to hear of a possible drop in July’s fuel price, a group of attorneys are now hoping to push the price up by 25 cents a litre to remedy the Road Accident Fund’s financial problem.
Though motorists were relieved to hear of a possible drop in July’s fuel price, a group of attorneys are now hoping to push the price up by 25 cents a litre to remedy the Road Accident Fund’s financial problem.
The group of attorneys, along with the Road Accident Fund (RAF), are hoping to convince the government – through a court order if necessary – to push the price of fuel up. In a fax to the minister of transport, the Law Society of South Africa (LSSA) said talks about the proposed increase must be held as a matter of urgency.
The fax reads: "We have made it clear to the RAF delegation that the attorneys’ profession and other role-players deem it necessary that government raises the petrol levy (to the RAF) to realistic levels.
"The RAF delegation confirmed 25c a litre has been demanded from the government. The LSSA delegation has undertaken to lend support in the application to facilitate the additional levy (to the RAF).
"Consequently, the attorneys’ group wants to request urgent talks with the transport minister with the aim of (discussing) proper funding of the RAF.
"If this does not succeed, it could, in public interest, become necessary to approach the courts for a declarative order that will force the government into a situation where the RAF can fulfill its financial obligations towards victims of car accidents."
Last week, the department of mineral and energy affairs announced that several factors, including a "big over-recovery", could influence the drop in prices. Economist Tony Twine predicted the fuel price could drop by 20 cents with the lower international oil price and firmer rand.
However, if the request by the LSSA and RAF is granted, it would hit the consumer hard and have a negative effect on the country’s economy and inflation and interest rates.
