Energy minister Jeff Radebe has called for stable global oil prices as sharply increased petrol costs put pressure on consumers and hurt economic development. However, oil cartel Opec has indicated it will continue to suppress global supply in the name of sustainability, even though oil stocks are in deficit. Radebe’s comments were made at the Africa Oil & Power conference which kicked off in Cape Town on Wednesday, and come two days after he announced the government is to intervene in the rising fuel cost crisis to cap increases at the pump to 5c a litre, instead of an expected 25c for September. The shock intervention comes after intense pressure from organised labour and opposition parties, and is meant to cushion SA consumers, who are paying R1.50 more for a litre of petrol than they were five months ago due to higher oil prices and a weaker currency. Opec, which accounts for 60% of the petroleum trade, forced non-Opec countries in late 2016 to cut oil production by 1.8-million ...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.