Government asks business to hold off on price increases after another petrol hike

Energy minister, Jeff Radebe, has appealed to the business sector to withhold passing on the increasing costs of fuel prices to the consumer.

“You would recall that in the month of September, we intervened in order to alleviate the fuel price increase, where the price of petrol did not go up,” he said in an interview on Wednesday (3 October).

“We want to appeal to the private sector to show some generosity by not passing on the cost to consumers because we know the price of bread and petrol has a devastating impact, especially on vulnerable members of the South African society. This is our appeal.”

The Department of Energy on Monday announced that a litre of petrol 93 (ULP and LRP) will rise by 99 cents, while that of 95 (ULP and LRP) will increase by R1.

In September, the fuel price remained unchanged following Radebe’s announcement of a 4.9 cents a litre increase in the retail margin of petrol.

At the time, it was announced that the 4.9 cents a litre increase would be ring-fenced for the wages of the forecourt staff. The 4.9 cents a litre salary increase is in line with the Motor Industry Bargaining Council (MIBCO) agreement of 18 November 2016.

Radebe said that Government was troubled by the rising fuel price – especially the effect it has on the cost of living and doing business in the country.

He added that the impact of a fuel price increase is multiplied through the cost of transport, goods and services.

This puts enormous pressure on households, farmers, businesses, investors and the delivery of services, he said.

“We would like to encourage all our motorists to be very circumspect when they plan their trips to moderate their driving habits so that they can save fuel.

“These are difficult times and as President Cyril Ramaphosa has highlighted, we need to stimulate the economy through this recovery and stimulus package that the President announced,” he said.


Read: 4 things South Africans will look to cut back on following the massive petrol price hike

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Government asks business to hold off on price increases after another petrol hike