Committee makes recommendations to mitigate rising fuel prices

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Chairperson of the Portfolio Committee on Mineral Resources and Energy, Zet Luzipo, says urgent solutions need to be found and implemented to mitigate the impact of rising fuel prices in the country.

Luzipo was addressing the committee during the tabling of the first draft of the report on fuel price increases.

The report shows an “exponential increase” in the cost of petrol – rising from at least R15.43 in December 2019 to about R20.83 currently in coastal areas.

For inland provinces, the price for petrol has now exceeded R20 and currently sits at R21.35 per litre from about some R15.88 per litre in 2019.

“At that time we were dealing with fuel hikes within the context of…a rise in commodity prices. Now, we are confronted with a new crisis which compounds the same work that initially was our responsibility to find a solution.

“Based on that we now have to deal with what we think needs to be taken into consideration what needs to be done with regards to mitigating all these issues,” he said.

The committee’s report recommended, amongst others, that:

  • The Ministers of Finance and Mineral Resources and Energy “develop mechanisms” in response to the fuel prices;
  • The review of the fuel price structure and all its aspects be expedited;
  • There should be investment in the upstream petroleum industry;
  • The option to build a refinery should be explored; and
  • More trade of oil and gas should be encouraged and coordinated between African countries through the African Union.
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Luzipo highlighted that these measures are critical in order to avoid what could be a devastating blow to those who are already struggling to make ends meet.    

“We all know the implications of the fuel prices. The actual person who feels the brunt at the end of the day is that individual who considers going somewhere [for example] to collect a social grant, who is going to be confronted with the fact that due to those fuel hikes, public transport becomes too expensive.

“It’s that individual who is going to go to the shops [and] when he wants a full basket, he is unable to do so because the costs of fuel have been transferred to…products which find themselves on the shelves.

“It is not just a direct incurred cost. It also affects, down the value chain, a number of our people. Including those that have got minimal to survive on,” he said. –

SA Gov News

SA Government News Agency is a news service, published by the Department of Communications (DOC).

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