Pappi reject government fuel price proposals
This follows news that government is proposing fixing a maximum price for unleaded fuel to cushion the blow on motorists.
PEOPLE Against Petroleum Price Increases (Pappi) has rejected the Department of Energy’s discussion proposal submitted for public comment. This follows news that government is proposing fixing a maximum price for unleaded fuel to cushion the blow on motorists.
According to energy minister, Jeff Radebe, a task team had been set up to consult with the petroleum industry on the proposal. The news comes weeks after the South Africa registered a record high for 95 octane petrol which now costs R17.08 in Gauteng and R16.49 at the coast.
Visvin Reddy from Pappi, said one of the proposals under discussion is the possibility of introducing a cap on 93 octane fuel, thereby allowing retailers to charge anything below the capped amount.
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“Research indicates than less than 25 per cent of South African motorists use this particular type of fuel. By implementing this proposal, the Department hopes that more motorists will use 93 octane so it will encourage competition. The government seems to think we are all fools, or the whole fuel pricing strategy in South Africa is foreign to them. Firstly, retailers will not be able to reduce the price of other fuels because the same government regulates those prices. This means that the price of 95 octane is determined by government. So what competition are they talking about?
“Government and political parties seem to think that fuel price increases impacts only on motorists. This is a very simplistic way of understanding the situation. Food and all other products sold in shops have to be transported by vehicles. When fuel prices go up the added transportation costs are included in the price of the commodity. Government refuses to consider sound proposals that would benefit all South Africans. We conclude that this administration is highly compromised and seek to protect the profits of monopoly industries at the expense of its people,” Reddy said.
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