Energy minister, Jeff Radebe, has announced that the proposal to cap the price of 93 octane petrol will be finalised by the end of January 2019.
Speaking in a parliamentary Q&A session on Wednesday (31 October), Radebe said that the proposal has been circulated to the fuel wholesale and retail industries which have been asked to comment on it, reports BusinessDay,
“We are very serious about changing and putting a cap on 93 octane,” said Radebe.
He added that the cap would go a long way in alleviating pressure on consumers.
The confirmation comes after Radebe announced that Government was considering fixing a maximum price for unleaded fuel at the start of October.
“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,” said Radebe at the time.
He added that a task team, including officials from the Department of Energy and the National Treasury, are examining what to do to cushion the blow of another increase as the international price of crude oil has kept increasing.
Radebe placed a hold on petrol price increases for the month of September, with only a five cents increase added as part of an ongoing wage agreement.
However, this was followed by a record increase in October as the price of 93 octane fuel increased by 99 cents per litre, while 95 octane was increased by another R1 at the pumps.
November is expected to provide a slight relief for owners of petrol vehicles, while the price of diesel is expected to see another large increase.