Fuel price will rise next month despite government intervention
Energy minister Jeff Radebe said on Monday that fuel prices will not increase next month‚ but it will nevertheless rise by 4.9c/l.
This is because the retail margin of petrol will increase by 4.9c/l to cater for annual salary increases for attendants‚ cashiers and other administration staff. Retail margins are paid to fuel station owners.
This increase is in line with the Motor Industry Bargaining Council (Mibco) agreement of November 18 2016.
Radebe said the fuel prices increases over the past few months had placed a strain on consumers.
“Despite the fact that these increases were caused mainly by international factors‚ the department has decided to intervene temporarily this month. This is a once-off temporary intervention to provide some relief to motorists and consumers against fuel price hikes.”