Go­vern­ment looks to cap fu­el pri­ce

George Herald - Auto Dealer - - News -

Go­vern­ment's re­se­arch in­to w­het­her the pri­ce of pe­trol can be cap­ped will be pre­sen­ted to par­li­a­ment next y­e­ar, Mi­nis­ter of E­ner­gy, Jeff Ra­de­be, an­noun­ced last week.

"We do not pro­du­ce our own oil in South A­fri­ca.

"We im­port our oil and the Or­ga­ni­sa­ti­on of Pe­tro­le­um Ex­por­ting Coun­tries (O­pec) de­ter­mi­nes pri­ces, which is beyond our con­t­rol. We are con­fi­dent that be­fo­re the end of Ja­nu­a­ry 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 minds to this and ot­her as­pects of in­tro­du­cing this."

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

The 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, he said at the ti­me.

The task te­am had until 18 Oc­to­ber to gat­her the ne­ces­sa­ry in­for­ma­ti­on, 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.

The Ci­ti­zen

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