DA welcomes announcement of price ceiling for 93 octane petrol – but it is still not enough

Issued by Kevin Mileham MP – DA Shadow Minister of Mineral Resources and Energy
22 Jul 2022 in News

Please find attached a soundbite by Kevin Mileham MP.

The DA welcomes the gazetting of a notice by government today inviting the public to comment on a proposed price ceiling on 93 octane petroleum.

This announcement is a direct result of sustained pressure by the DA calling for the full deregulation of the fuel price in South Africa. Today’s announcement by the government is welcomed, but still does not go far enough.

Government has maintained unnecessary control over the fuel price for too long, thereby hindering competition in the fuel sector which would result in lower prices at the pump for consumers, and more innovative selling methods by fuel retailers.

The DA believes that a full deregulation model which goes beyond a price ceiling is most desirable for consumers and producers alike. Full deregulation is common practice in developed economies, and it is time South Africa joined their ranks.

The question also has to be asked: why only 93 octane petrol? Surely, in the interests of easing the burden of high fuel prices, all grades of petrol should be subject to this?

The DA will be tabling a Bill in Parliament shortly which goes beyond a price ceiling by allowing for full deregulation of the market. This will result in a competitive market from the retail to the wholesale level, benefiting both consumers and retailers alike.