Minister Mantashe has given the public 30 days to comment on the intention to introduce a price cap or maximum price for petrol 93-octane. Photo: GCIS / Flickr
Public has 30 DAYS to comment on deregulation of 93-octane petrol price
Minister Gwede Mantashe published a gazette asking for public comment on placing a price cap or maximum price on 93-octane petrol.
Minister Mantashe has given the public 30 days to comment on the intention to introduce a price cap or maximum price for petrol 93-octane. Photo: GCIS / Flickr
On Friday, 22 July, Mineral Resources and Energy Minister Gwede Mantashe published a gazette requesting public comment on retailers setting their own price for 93-octane petrol.
Mantashe has had the notice for a while, but what exactly does it mean for consumers?
While the minister did not provide information regarding when this would be implemented or how the price cap would be calculated, the public was given 30 days to comment on it.
Mantashe’s signature on the document is dated 30 June 2022. This means the minister has had the notice for three whole weeks. So what does it mean to move to a price cap or a maximum price?
Business Insider reported that this change would allow retailers of petrol to discount the fuel they sell how they see fit – this could be with price specials, volume discounts or even fuel bundles.
Currently, Government sets the petrol price and it is illegal to sell fuel at any other price other than what has been stipulated by Government.
The Minister is accepting written comments and emails
The notice published by Mantashe reads:
“I, Samson Gwede Mantashe, the minister of mineral resources and energy, under section 2(1)(c) of the Petroleum Products Act hereby give notice of the intention to introduce a price cap or a maximum price for petrol 93 octane. Comments from stakeholders should be submitted within 30 days of the publication of this notice.”
Written comments can be submitted to Raphi Maake at the department in Pretoria or hand-delivered to Matimba House. Comments may also be sent to fuelpricing@energy.gov.za.
The DA welcomed the decision but feels it’s not enough
Responding to the news of the notice, the Democratic Alliance (DA) stated that the decision was a ‘direct result of sustained pressure’. Although the opposition party welcomed Mantashe’s decision, the DA said it still does not go far enough.
The DA is firm in its belief that a FULL deregulation model is more desirable for both producers and consumers. The party also questioned why Mantashe singled out just 93-octane petrol.
“Full deregulation is common practice in developed economies and it is time SA joined their ranks. The question also has to be asked: why only 93-octane petrol? Surely, in the interests of easing the burden of high fuel prices, all grades of petrol should be subject to this?”
asked the DA.
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