South Africa’s petrol price increased by 75c on Wednesday.
Finance Minister Enoch Godongwana says that SA will move to “full deregulation” of the fuel price in time, with wholesalers and retailers competing to sell 93 and 95 octane petrol.
Although the 1998 White Paper on energy proposed deregulation of the fuel price, the Department of Mineral Resources and Energy has been reluctant to commit to deregulation – despite pressure from Treasury.
Godongwana announced changes to the fuel price regime in Parliament on Thursday, saying that government would lower the fuel tax by R1.50 a litre for April and May. In April fuel prices are expected to rise steeply but the amount had not been announced by late Friday. He also said that the 93 octane would effectively be deregulated from June. While the government will still announce a monthly price, wholesalers and retailers will be allowed to sell below that price.
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