Consumers will be forking out more for air travel after the government raised the aviation fuel levy in May.
The amendment to the South African Civil Aviation Authority Levies Act, 1998 (Act No 41 of 1998), which was published in the Government Gazette on May 26, proposes an increase in the current 20.83 cents per litre fuel levy that will be payable by both consumers and wholesale distributors.
Democratic Alliance spokesperson on transport, Chris Hunsinger, warned that the price hike would likely result in higher prices for airlines and their passengers.
He said the DA was concerned about the ramifications of the proposed increased levy, particularly its impact on airlines, charters, and passengers.
“The amendment will indisputably inflate the base costs for these businesses, already grappling with daunting economic challenges. The aftermath is clear and unavoidable: this expense will be shouldered by the passengers,” Hunsinger said.
“This escalation in levy further complicates the aviation industry’s intricate pricing structures and advanced booking systems. It introduces an additional and unpredictable variable into an already complex equation. The long-term effects will unquestionably lead to heightened fluctuations in end-user prices, destabilising the industry.”
He said “alarmingly” the amendment appeared to have been enacted without any industry consultation.
“The lack of transparency and engagement violates the principles of public participation, fundamental tenets of the original Levies Act. This approach threatens the very democratic processes that underpin our legislative systems. A unilateral decision of this magnitude undermines the stability of the industry and dismisses the invaluable insights industry stakeholders could provide,” he said.
Hunsinger called for the government to explain what justified the decision and why the Aviation sector hadn’t been consulted.
“We call on the South African Civil Aviation Authority to retract this amendment and commit to a more comprehensive, transparent process. This is the only path to preserving the sustainability of our aviation industry and protecting South African consumers.”
Meanwhile, in February, the Department of Transport gazetted changes to airport tariffs, increasing the cost of using airport facilities, including parking, VAT and passenger service fees. These costs are reflected in the price of air tickets.
