ENERGY DEPT BEGINS FORMAL PROCESS OF DEREGULATING PETROL PRICE IN SA

Energy Minister Gwede Mantashe has published a government gazette, asking the public to chip in on his intention to introduce a price cap for 93 octane.

FILE: Picture: CapeTalk

Eyewitness News

JOHANNESBURG - The Department of Mineral Resources and Energy has started the formal process of deregulating the price of petrol in South Africa.

Energy Minister Gwede Mantashe on Friday published a government gazette, asking the public to chip in on his intention to introduce a price cap for 93 octane.

This will allow fuel retailers to set their own fuel prices including petrol discounts.

Currently, the exact price of petrol is set by the government.

South Africans have 30 days to comment on the proposal before the process can be implemented.

Economist at RMB Siobhan Redford explained what the price cap might look like: “The current retailer margin is sitting at 228 cents per litre and the current formula would be the very obvious case where there could be some competition if it were to be amongst some retailers.”