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The fuel price ceiling is still under investigation, says the Energy Department

The Ministry of Energy is still exploring the feasibility of imposing a fuel cap ceiling, and the outcome will be announced in time, said the spokesman for Fin24 on Wednesday.

The possibility of a hard price ceiling on unleaded fuel was 93 Minister of Energy Jeff Radebe in mid-October 2018.

The price ceiling would mitigate drivers' prices. But in 2018 economists have already expressed concern that if they were implemented, it would become a serious outburst of state finances.

New formula for pricing

Energy spokesman Johannes Mokobane said on Wednesday that talks on the feasibility of a ceiling within the department were in advanced stages.

"The department has concluded individual agreements with all interested parties, who submitted their comments to the ministry on 28 March 2019. At present, this report is being discussed internally," Mokobane said.

Mokobane said that the government is also considering the dismantling of the fuel accident fund with fuel prices with the new law on road accidents, which is still under discussion.

"The department started the procedure for reviewing the formula for determining fuel prices, and the deadline for submitting comments on the price of basic fuel prices was at the end of March 2019.

"The results of the review will be notified by the section on the way forward," Mokobane said.

Mokobane said that the freeze on the price of gas seen in South Africa in September 2018 was a one-time intervention to respond to the pressure exerted by consumers on the previous price increase.

The state is expected to announce a regular monthly increase in fuel prices next week. According to AA, unexpectedly high international fuel prices increased the likelihood of a new march.

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