Is our fuel price being politicised?
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On September 3 energy minister Jeff Radebe announced that fuel prices for September would remain unchanged bar a 4.9c per litre increase in the retail margin for petrol to provide for wage increases for some petrol station staff.
The intervention applied to the prices of petrol, diesel, paraffin and liquid petroleum gas (LPG).
This means that somehow government protected the consumer against an increase of about 30c per litre.
Nevertheless, the prices were at record levels. The inland petrol price, for example, rose to R16.03 a litre in August from R11.24 in January. Coastal prices increased to R15.44 per litre from R10.83 at the beginning of the year.
Radebe did not disclose in his statement exactly how his capping of the fuel prices would be funded, save to say it was a “once off temporary intervention”.
Department of Energy (DoE) director for fuel prices Robert Maake subsequently told Engineering News that the intervention was to provide some relief while government finalised a longer-term intervention strategy. The strategy should be finalised by the end of September in line with a Cabinet resolution, he said.
At a background briefing to the media last week the South African Petroleum Industry Association (Sapia) shed some light on the mechanism the minister used for his intervention and what the consequences would be.
The intervention applied to the prices of petrol, diesel, paraffin and liquid petroleum gas (LPG).
This means that somehow government protected the consumer against an increase of about 30c per litre.
Nevertheless, the prices were at record levels. The inland petrol price, for example, rose to R16.03 a litre in August from R11.24 in January. Coastal prices increased to R15.44 per litre from R10.83 at the beginning of the year.
Radebe did not disclose in his statement exactly how his capping of the fuel prices would be funded, save to say it was a “once off temporary intervention”.
Department of Energy (DoE) director for fuel prices Robert Maake subsequently told Engineering News that the intervention was to provide some relief while government finalised a longer-term intervention strategy. The strategy should be finalised by the end of September in line with a Cabinet resolution, he said.
At a background briefing to the media last week the South African Petroleum Industry Association (Sapia) shed some light on the mechanism the minister used for his intervention and what the consequences would be.
