The government will intervene to soften South Africa’s record-high petrol price in April, says finance minister Enoch Godongwana.
A broad number of interventions will also be considered once the two-month period lapses, including a review of the basic fuel price, the minister said.A reduction in the Basic Fuel Price of 3c/l, in line with the recommendations of the review done by the Department of Mineral Resources and Energy .The introduction of a price cap on 93 octane petrol, following from the previous DMRE proposal and consultation. This will allow retailers to sell at a price below the regulated price.
The Regulatory Accounting System will be reviewed to assess whether adjustments can be made to lower the margins over the medium term. Interventions will be considered by the DMRE to reduce the price pressure for illuminating paraffin over the medium term. Godongwana said the intervention will have no impact on the fiscal framework with the money taken from the current reserves.