Report on possible fuel price cap ready by January, says Radebe

Jeff Radebe
Jeff Radebe

Minister of Energy Jeff Radebe told Parliament on Wednesday afternoon that his department’s work in researching the possibility of fixing a cap to the price of unleaded fuel would be concluded by January next year. It would report to Parliament on the matter then.

Radebe’s remarks come after record fuel price increases took place at a frequent rate over the past year. Even when government tried to introduce a freeze on the price of petrol recently, another aggressive increase followed.

Replying to a question from ANC MP Ndabakayise Gwbaza, Radebe said a significant challenge was that the price of fuel was determined by factors beyond government's control.

"We do not produce our own oil in South Africa. We import our oil and OPEC determines prices and this is beyond our control. This measure would go a long way and we are confident that before the end of January 2019, there will be a proposal on the table," Radebe said.

Inkatha Freedom Party Jan Esterhuizen asked the minister what legal steps would be necessary for the ceiling.

Radebe said the South African Petroleum Industry Association would assist the department in investigating the possibility of fixing a maximum price for unleaded fuel to cushion the country from escalating prices.

"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 mind to this and other aspects of introducing this," Radebe said.

ZAR/USD
17.04
(-0.00)
ZAR/GBP
21.31
(-0.30)
ZAR/EUR
19.27
(-0.61)
ZAR/AUD
11.87
(-0.28)
ZAR/JPY
0.16
(-0.09)
Gold
1776.80
(+0.10)
Silver
18.21
(+1.14)
Platinum
824.00
(+1.85)
Brent Crude
42.85
(0.00)
Palladium
1910.00
(-0.05)
All Share
54796.90
(+0.50)
Top 40
50452.51
(+0.54)
Financial 15
10152.93
(+0.03)
Industrial 25
76375.59
(-0.23)
Resource 10
51051.68
(+1.82)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1633 votes
I am taking a hit, but should be able to recover in the next year
23% - 2144 votes
My finances have been devastated
34% - 3200 votes
It's still too early to know what the full effect will be
25% - 2324 votes
Vote