Petrol prices: Government considers fixing a maximum price for fuel

Rising petrol prices have forced Energy Minister Jeff Radebe to consider fixing a maximum price for unleaded fuel.

This announcement was made during a cabinet briefing on Thursday, where issues relating to exorbitant petrol prices were being discussed by members of parliament. Currently, South Africans are paying more for fuel than ever before – worryingly, the situation is set to worsen.

Fuel hikes set to worsen

According to a report by Fin24, Radebe bemoaned both local and international stumbling blocks for the sudden spike in petrol prices. Inland motorists are currently paying over R17 for a litre of petrol. In March, a litre of unleaded 95 petrol cost R13.76.

Consecutive fuel hikes have had a disastrous knock-on effect on every South African consumer. While the agricultural sector has been especially hard hit, transportation costs have soared as a means to rebuff the rising costs of petrol. This means that every South African, whether a motorist or not, is unable to escape the brunt of rising petrol prices.

Minister Radebe notes the dire financial situation, exacerbated by unaffordable fuel hikes, which plagues the ordinary South African, saying:

“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].”

Energy Minister looks to cap petrol prices

Radebe already spared motorists from a fuel hike in September – which has now caught up to consumers, double fold – but the minister is now considering more drastic, long-term measures to soften to blow.

Radebe has called together a governmental team, made up of parties representing the Department of Energy and the Central Energy Fund (CEF), which is tasked with investigating the possibility of implementing a price ceiling on unleaded petrol.

The task team will assess the feasibility and sustainability of such a move. It is expected to report back to the minister on 18 October.