South Africa is facing petrol price pressures that are set to continue, but supply is not under threat.
This is thanks to the country’s diverse oil supply sources and is in part due to South Africa not being an enemy of Iran.
Mineral and petroleum resources minister Gwede Mantashe told parliament’s portfolio committee on mineral and petroleum resources that while price pressures await at the pump, South Africa’s fuel supply is not in jeopardy.
“There’s no shortage of petrol, oil or diesel in the country. It is just expensive. That is the function of the price. But in terms of supply, it is available because we are not an enemy of Iran. That is what saved us. The issue is price, and that is not in our control.”
He said South Africa largely relies on the Strait of Hormuz, which was disrupted by the US-Iran war, for processed products, and the government is looking to supplement the 60% finished product supply domestically through the Natref Refinery and a Cape Town refinery.
Despite US President Donald Trump declaring a “double-sided” ceasefire earlier this month in the war between the US and Iran that started at the end of February, tensions have remained, and Trump has reportedly said he believes an extension of the ceasefire beyond its deadline on Wednesday is “highly unlikely”.
Mantashe also told the committee the relief announced by himself and finance minister Enoch Godongwana, when the general fuel levy was cut from R4.10/l to R1.10/l for one month, could be extended if an agreement can be reached at cabinet level.
“We are talking to the minister of finance to extend that for another two months. If he agrees, that is the relief we give to the people. The price of oil will come down. When the state of the world opens for a few days, that shows we can normalise the situation today. We will have a lot of relief.”
He said the price of fuel and diesel is gazetted regularly, not by a range but by an amount, and any trader who sells petrol or diesel below the gazetted price is involved in criminal activity.
“That price is regulated globally. The first is the price of petroleum set globally per barrel. The other is the exchange of currency. How much is a rand to a dollar? As we move away from the dollar to other currencies, that becomes very fluid.”
DA MP James Lorimer asked the minister why a tanker carrying goods destined for South Africa from the Strait of Hormuz was reportedly stuck in transit if South Africa was not at war with Iran.
“The crisis in the Middle East is because of the war. That is a result of war. Iran opened the Strait of Hormuz, but there are complications. What we need to appreciate is that there is a war in the Middle East, and when there is a war, the control of facilities is limited to a state,” Mantashe replied.
The department told the committee the presidency is undertaking the appointment of directors and board members of critical entities, and the appointment of the SA National Petroleum Company CEO and board members will be informed by that process.
TimesLIVE
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