Energy minister Jeff Radebe has approved an urgent temporary fuel-price intervention measure‚ which will see the petrol price increase 5c a litre in September.
The central energy fund was expected to announce the September adjustment on Friday last week but postponed it to Monday. The increase will still come into effect on September 5.
Radebe approved a retail margin increase of 5c/l to be effected in the retail price structures of all octane grades of petrol. “This increase is necessary to accommodate the wage increases of pump attendants‚ cashiers and administrative staff at service stations‚” the department said.
The expected rise in petrol was set to be about 25c/l to 27c/l‚ with diesel at 31c/l and illuminating paraffin 19c/l.
Radebe said in August that he would look into action plans to reduce fuel costs‚ acknowledging that prices were at a record high.
In a statement on Monday‚ the department said government’s intervention is a once-off and the step was taken “because South Africans have seen sustained increases for the past five months”‚ which has put pressure on consumers.
“Despite the fact that these increases were caused mainly by international factors‚ the department has decided to intervene temporarily for this month.”
At the time of writing‚ there was no comment about how the resulting revenue shortfall due to the intervention would be funded.
By: Sunita Menon – BusinessLIVE
Source: TMG Digital.