A close examination of SA’s fuel price structure and large-scale intervention to stop wasteful expenditure of taxpayers’ money are central to tackling the country’s soaring fuel prices.
Such a review of SA’s fuel price is essential, and long overdue. It must also be conducted against the backdrop of serious governance challenges facing the country, especially as they relate to the fuel price. Discussing solutions to mitigate rising fuel costs cannot occur in a vacuum without the contextualisation of corruption and revenue distribution.
The RAF levy is problematic for several reasons. The fund has been mismanaged and is in financial ruin. Private sector intervention in this institution is necessary and non-negotiable. But the bigger question, which is sadly not asked often enough, is why we have such an overreliance on the RAF in the first place. By its own account, the government pegs the cost of road crashes to our economy at about R193bn a year.
Running parallel to this must be the realignment of government expenditure to those services that require it, and tighter control of state-owned entities . Two examples stand out. First, the high remuneration of executives and wasteful expenditure at underperforming SOEs is neither morally correct nor financially prudent.
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