State mulls relief for motorists with petrol price cap
Maximum tariff for 93 octane would provide relief to squeezed consumers and shift drivers away from 95
The government is hoping a plan to allow some competition into setting the price of 93 octane fuel will result in lower prices and shift higher numbers of consumers into using it rather than higher-octane 95. The proposal has been circulated to the fuel wholesale and retail industries, which have been asked to comment on it by Wednesday. It is tentative at this point and best described as a "market-sounding" exercise, said government officials. The move comes as the country faces record high fuel prices due to a rising oil price and weak rand, with the price of 95 octane in Gauteng at R17.08 and 93 at R16.85. With the exception of diesel, fuel prices are regulated at the pump and adjusted each month. Political pressure But political pressure has been mounting on the government to provide some relief as only about half of the price is comprised of the basic fuel cost and the rest is made of levies and other charges. Deputy director-general in the department of energy Tseliso Maqubela...
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