By Lungile Ntimba
The government is in discussions to intervene in the reduction of administered prices in South Africa, according to Minerals and Resources Minister Gwede Mantashe.
He said the fuel price directly influenced the cost of living for South Africans.
“If the fuel price goes up, the cost of living goes up, which is not good for our society. To make life more affordable for all South Africans, we have already begun discussions on reducing administered prices, including the price of fuel and electricity.
“Included in the discussions of fuel prices are discussions on, but not limited to, the general fuel and the Road Accident Fund levies” the minister said.
Mantashe was addressing the Africa Oil Week in Cape Town.
“In the fuel price, there is the general fuel levy, there is the Road Accident Fund linked to the price of fuel. Our argument is that you are distorting the price of fuel. Let’s find a formula of separating them and have the price of fuel visible, and when there is intervention in the fuel price, we can see it,” he said.
He told meeting that the government aimed to conclude these discussions soon.
The minister also announced the government’s planned to develop the country’s petroleum resources to boost economic growth.
He said the Upstream Petroleum Resources Development Bill was ready to be approved by President Cyril Ramaphosa after it was passed by both Houses of Parliament.
“We are convinced that once the Bill is enacted into law, it will not only pave the way for an orderly development of the Upstream Petroleum Industry, but will boost the country’s economic growth to 8% as is the case with Namibia which increased its potential to double its economy by 2040 on the back of its recent discoveries of oil and associate gas,” Mantashe said.
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