No wholesale margin on fuel this month

Briefing reporters on Monday, Minister of Minerals and Energy Buyelwa Sonjica said the wholesale margin in the price structure of petrol, diesel and illuminating paraffin will not be implemented this month.

This means on Wednesday unleaded 93 petrol will go up by 73 cents per litre; 95 unleaded petrol will increase by 75 cents per litre and diesel will go up by 63 cents per litre and paraffin will increase by 49 cents per litre.

“The ever-increasing fuel price has necessitated a need to review and collectively find solutions to challenges facing the country,” said Sonjica.

She said she was aware that in terms of the fuel adjustment, there was a consideration for a 5.4 cents wholesale margin.

“In the meantime, we would not be affecting the proposed 5.4 cents wholesale margin this month, we want to bring relief to consumers,” she said.

Sonjica said it was imperative for her to urgently consult with the relevant role players to develop options and take a medium to long term view in the context of business unusual before effecting the proposed increase.

“As the minister responsible for energy, I am not oblivious to the vagaries of these high oil prices on the South African communities.

“I am urging South Africans and all the role players publicly to engage with these issues so that they can't be left solely be left to the vagaries of the market,” she said.

Asked when the proposed 5.4 cents will be effected, she said,"...during our consultations, I would also lobby the industry to consider the delay of increasing the petrol price."

Motorists are currently paying between R9.81 and R9.96 a litre, depending on the grade of petrol. Starting from Wednesday petrol price will be over R10 a litre, despite the 5.4 cents per litre relief.

Article published courtesy of BuaNews