GOVERNMENT says fuel levies are not going anywhere and South Africans have to accept that the price of crude oil is determined in the international market.
The month of July has seen fuel prices hit record highs in the country, reaching the R16 a litre mark for the first time.
According to government, the main contributor to the current level of fuel prices in South Africa culminates from the sharp increases in international crude oil and refined petroleum product prices.
“Government wishes to remind all South Africans that the reality for non-oil producing countries like ours is that we have to accept the price of crude oil determined in the international market. The main player in the determination of oil pricing internationally is the Organisation for Petroleum Exporting Countries (OPEC). Together with the Russian Federation, OPEC decided to cut oil production in order to eliminate an oil glut in the market, which was keeping prices of crude oil very low,” said a statement released by Ministers in the Economic cluster.
The Ministers also advised consumers of fuel to use all possible opportunities within our personal powers to contain costs.
Among the actions that we can take is to moderate our driving habits as motorists.
Ensure correct tyre pressure, balancing and wheel alignment. Plan and combine of trips to avoid unnecessary journeys. Drive at lower than the speed limit. All these actions will help to save fuel and contain costs.
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Going forward, government says it will sustain engagement with the oil producing countries to call upon them to moderate their stance on oil production cuts as this hurts the global economic growth prospects, and in particular is detrimental to all developing countries.
“South Africa needs to ensure that the framework for the exploration and production of oil and gas is finalized through the Minerals and Petroleum Resources Development Act (MPRDA) in the short term. This will encourage oil and gas exploration on the territorial waters of the country, which in the long run will benefit oil and gas consumers,” said the statement.
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