Government may put a cap on petrol prices in South Africa – Minister

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The South African government may set a maximum price for unleaded fuel to protect customers against severe price increases, Fin24 reports.

Energy Minister Jeff Radebe said that the government is aware of the effect of these price increases on citizens, and a task team has been examining how to reduce the effects of further increases as the price of crude oil continues to rise.

“Government is deeply concerned by the rising cost of petrol in South Africa which is largely caused by the rand-dollar exchange rate, and the price of crude [oil],” Radebe said.

The task team includes officials from both the Department of Energy and the National Treasury, and is currently considering the logistics of implementing a price ceiling as well as the legal steps required to make this possible.

The government said it will gather enough information to make its decision regarding a maximum price for unleaded fuel by 18 October 2018.

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