Cabinet has appealed to the private sector to delay transferring the cost impact of the fuel price hike on consumers.
The appeal on Thursday cames as the price of fuel went up by 26 cents a litre at midnight on Tuesday, with Cabinet warning that another fuel price increase is anticipated next month.
In a statement Cabinet also moved to assure South Africans that government is making an effort to alleviate the challenges faced by poor communities.
Acting cabinet spokesperson, Phumla Williams, said Treasury has appointed a nine-member panel of experts to review the current list of Value-Added Tax (VAT) zero-rated items currently consisting of 19 basic food items.
"President Cyril Ramaphosa is leading the team, comprising representatives from both government and private sector, to draw in more investors into the country so as to grow our economy and create much-needed jobs, particularly for unemployed youth," said Acting Cabinet spokesperson Phumla Williams.
She said Cabinet "appeals to the private sector to lend a hand, by delaying to transfer the impact of the fuel prices to the consumer."
"This will go a long way in cushioning the poor, who will be directly affected by these price fluctuations. Growing our economy will go a long way in stabilising our economy. Cabinet also appeals to the private sector to partner with the government for the benefit of all affected South Africans, particularly the poor," William said.
The said Cabinet "noted the recent fuel increases, which follows from another price increase in the past month", adding that "another fuel price increase is anticipated next month."
"The Brent Crude Oil Dollar denominated price has been affecting the general prices of petrol, diesel and paraffin. Our currency's exchange rate to the US dollar has fallen by more than one percent since the beginning of May this year."
"These cyclical currency changes, which result in price fluctuations, have impacted negatively on the consumers, particularly the poor. The rise in petrol prices directly affects transport costs, food prices particularly the cost of staple food and medicine," said Williams.
