Mantashe in talks with Finance Minister over fuel price composition

Mineral Resources and Energy Minister Gwede Mantashe says he’s in talks with Finance Minister Enoch Godongwana on the composition of the fuel price in the country.

The latest fuel price hike came into effect at midnight with 95 octane petrol now costing around R21,60 a litre.

Both grades of petrol rose by R1,46 a litre following rising oil prices amid Russia’s invasion of Ukraine.

The price of diesel has risen by R1,44 a litre, paraffin has gone up by R1,20 cents a litre.

Mantashe says international factors have an impact on fuel prices.

“The price of oil if it goes over a hundred rand will see it. It doesn’t matter how you calculate it and because our exchange currency is in the open market, it fluctuates depending on that pressure that you cannot change unless you want to have a fixed rand-dollar exchange which is not working in the real world.”

Energy poverty

Speaking on the sidelines of the Africa Energy Indaba in Cape Town, Mantashe said the high price of energy is perpetuating energy poverty.

The minister says there is no universal access to energy, adding that African economies are beset with intermittent electricity supply and high tariffs.

Mantashe says these factors impact adversely on industrial production and on the ability of the poor to improve their well-being.

He says government is also looking at how the price of petrol is calculated.

More details in the video below:

Pressure on consumers 

Meanwhile, the Automobile Association of South Africa says fuel price increases will have an immediate impact on the poor.

Spokesperson Layton Beard says this will also have a long-term effect on inflation.

“The impact certainly is dramatic and salaries and wages have not been keeping pace with the increase. This massive increase is going to put more strain on other things as well. E-tolls are getting expensive, electricity, and everything in general. The fact is that there are many millions of South Africans who are already struggling financially, and this is going to be an extra burden on them.”

Motorists also expressed their frustrations at having to keep up with constant fuel increases.

SABC News Reporter Hasian Gori speaks to frustrated motorists: