EDITORIAL | Talk is cheap, Gwede, but fuel certainly isn’t

If there were ever a time cash-strapped South Africans needed news of a semblance of economic relief it is now.

All eyes are on mineral resources and energy minister Gwede Mantashe, who provided a glimmer of hope when he said on the sidelines of the recent Africa Energy Indaba in Cape Town that discussions were under way with finance minister Enoch Godongwana to review how the fuel price is structured.

Mantashe was quick to point out that his department is not responsible for its cost, but rather the formulas.

Talks would thus focus on whether there should be a review of the formula.

Godongwana too, during his budget speech, mentioned consultations with Mantashe about government’s “intention to review the structure of the petrol price going forward” to be competitive in the economy.

But for South Africans struggling to feed themselves and keep roofs over their heads in the face of escalating living expenses, talk is cheap.

Minister Mantashe, it’s all well and good that discussions are under way, but South Africans need to know now where these talks will lead and if there is likely to be some relief on their pockets. 

Heart-wrenching stories of people skipping meals and families trying to stretch shoestring budgets are emerging as government deliberates about calculations.

Many are bracing themselves for what are regarded as the toughest economic conditions in at least a decade as the cost of basic food items spikes and the war in Ukraine threatens to push fuel prices to record highs.

Topping this is the electricity price hike of at least 10% in July and the prospect of further interest rate increases as the rand comes under pressure.

Households will have to dig deeper to beat rising living costs in the face of a global shortage of vegetable oil and surging wheat prices, with Russia being the world’s biggest exporter of the latter and Ukraine the fifth biggest.

Petrol hit R21/l after a R1.46 increase earlier this month and there are fears of a much steeper hike in months to come.

Minister Mantashe, it’s all well and good that discussions are under way, but South Africans need to know now where these talks will lead and if there is likely to be some relief on their pockets. 

We’re done with lip service.

As the Automobile Association rightly said, a review of the fuel price structure and an audit of the elements which make up its cost “should be done sooner rather than later”.