SA still looking into whether fuel price can be capped

Government’s research into whether the price of petrol can be capped will be presented to parliament next year, said Minister of Energy Jeff Radebe on Wednesday.

“We do not produce our own oil in South Africa. We import our oil and OPEC [Organisation of Petroleum Exporting Countries] determines prices and this is beyond our control. This measure would go a long way and we are confident that before the end of January 2019 there will be a proposal on the table,” Radebe told parliament.

“The proposal … will determine the legal steps that must be taken. That is why we are working with the [SA Petroleum Industry Association] and they are applying their mind to this and other aspects of introducing this,” he continued.

Radebe confirmed on October 11 that government is considering a maximum fixed price for unleaded petrol as a solution to the consecutive increases the country faced in recent months.

Fin24 reported at the time that a task team comprised of officials from the department of energy and National Treasury had been set up to find a solution that would help cushion the financial blow of the ever-increasing petrol price.

“Government is deeply concerned by the rising cost of petrol in South Africa, which is largely caused by the rand-dollar exchange rate, and the price of crude [oil],” said Radebe at a post-cabinet briefing.

The task team has until October 18 to gather the necessary information. This will be followed by a look into what needs to be done to make the fuel price cap a legally viable decision.

Consumers were granted a “once-off” reprieve in September after government intervention capped the fuel price increase at 5c.

(Additional reporting by Kaunda Selisho)

For more news your way, download The Citizen’s app for iOS and Android.