Fuel prices remain high despite mitigating measures

• Published date: 19 May 2022
• Publication title: South African Official News

Mineral Resources and Energy Minister, Gwede Mantashe, says despite government's mitigating interventions to cushion consumers against rising fuel costs, global events have led to prices escalating.

He said this when he tabled the department's budget vote during a mini-plenary of the National Assembly on Thursday.

'The domestic and global economic realities under which our budget is delivered today remain dim, continuing with the difficult conditions of 2020 and 2021.

'In partnership with the Minister of Finance, we have introduced mitigating measures to contain the rise of fuel prices,' he said.

This comes after Finance Minister Enoch Godongwana tabled a proposal last month for the fuel levy to be reduced by R1.50 cents per litre.

In a statement made to the National Assembly at the time, Godongwana said the temporary fuel levy cut would come into effect last month, and would remain in effect until the end of May.

The proposal was aimed at supporting a phasing in of the fuel price increases that are expected in the short-term.

Addressing MPs on Thursday, Mantashe said: 'However, due to global events pushing oil prices above US $100 (one hundred US dollars) per barrel and high US interest rates, fuel prices are set to rise again.'

Ensuring energy security

Mantashe said the department has implemented various intervention measures on energy security and supply.

'However...