Cape Town – The National Treasury and the department of mineral resources & energy reportedly met over the weekend to discuss options regarding the ever-increasing fuel price.
According to EWN, the price of gasoline was expected to rise by about R3.81 per litre on Wednesday, bringing the price of a litre to around R25.
Finance Minister Enoch Godongwana and the Mineral Resources and Energy minister Gwede Mantashe said that another intervention that could be a relief to motorists was being considered.
Although the news might bring hope to consumers, political parties such as the Democratic Alliance (DA) said that the ministers could have done something sooner because they knew beforehand that the fuel levy was coming to an end at the end of May.
ALSO READ: ‘Expect massive fuel price hike in June,’ SA motorists warned
The South African Petroleum Industry Association (SAPIA), on the other hand, warned against making wholesale changes to South Africa’s petrol prices amid growing calls to review how they were calculated in the country, according to BusinessTech.
SAPIA, is a trade group representing major petroleum retailers and refiners, including BP, Engen, Shell.
“The overriding rationale of the control of prices and margins should be to ensure that the various stakeholders in the industry earn fair returns. The returns should be sufficient to encourage investment in the industry, while not being such as to represent over-reward. While the system to determine fuel price adjustments is not flawless, it is a fair and transparent process, documented, subject to constant review and auditable,” SAPIA said as quoted by the report.
Expects warned recently that South Africans must expect a massive fuel price increase in June after the fuel levy reprieve that was granted to consumers by government to assist them with a lower petrol price kicks in again from the end of May.
ALSO READ | SA govt announces emergency petrol price intervention
According to The Citizen, Economist Dawie Roodt said three factors would add to the increase in the petrol price.
The three factors are:
- The exchange rate of the rand: The rand weakened and because of that we can expect an increase in the petrol price of around R1 a litre.
- International oil prices: The international oil price has been relatively high and that will add another R1 to a litre of petrol.
- Fuel levy: The reduction in the fuel levy will expire at the end of May. This will add another R1.50 next month.
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Compiled by Sinothando Siyolo
