South African motorists, many of whom already feel like revenue-creating scapegoats every time they exceed the speed limit, might have to contend with even lower speed limits in future - in the interests of saving fuel, according to government.
Energy Minister Dipuo Peters has requested an investigation into the possibility of reducing speed limits as one of the ways of increasing fuel efficiency while prices escalate.
“I have instructed my team to determine the level at which a reduction of the speed limit may be necessary. This will include consultation and concurrence of the department of transport,” she was quoted saying in a statement from her office.
Her spokesman Ndivhuwo Khangale said: “Nothing concrete has been finalised,” of the idea that evokes memories of the rationing of the 1970s when anti-apartheid sanctions limited fuel supplies in South Africa.
Peters said last week's increase, which saw fuel prices hover around the R10 a litre mark, had the potential of disrupting economic growth in the country and could cause major disruptions in countries that have not had the currency strength to counter the increases.
In the last two years, crude oil prices have quadrupled from around US$30 a barrel.
“I am concerned about the impact on the ordinary farmer and the impact paraffin price increases have on the poorest of the poor,” Peters said.
Three factors beyond the government's control influence prices, she explained.
“Whilst the loss of Libya's volumes of crude oil supply has been made up by others, the quality of Libyan crude is of such a nature that it cannot be easily replaced. It is easier to process and as such its absence in the market adds to the complexity in crude oil refinery diets.
“Secondly the speculators in the market do take advantage of prevailing challenges and add a premium of their own.
“The third is a more worrying reason and one that leaves us no option but to implement fuel efficiency measures. This is the demand for crude oil which has just about reached levels last seen in 2008 and is rising.”
Production facilities may find it difficult to keep up with the demand and this will inevitably result in sustained high prices even when the conflicts have relaxed.
She urged people to consider whether they really need to drive somewhere, or whether they can walk and go to work with a lift club.
She questioned speeding away from traffic lights and recommended not using air conditioning during winter, as this could add eight percent to fuel consumption.
South Africa is not the only country grappling with fuel prices. Some of the proposals in the UK include fuel duty stabilisers and the granting of energy credits which can be used on vehicles or in the home.
Peters claimed that South Africa's fuel taxes are already relatively low and among the lowest in the G20. -IOL & Sapa