Inland fuel levy of 3c a litre to be scrapped

An inland fuel transport levy that costs motorists an extra 3c a litre would be abolished from next month, the Department of Energy announced yesterday. “The minister has approved the termination of the IITRS levy of 3c a litre applicable in the price structures of petrol and diesel with effect from April 2,” director of fuel pricing mechanisms Robert Maake said. “This levy will not be part of the basic fuel price, so it will be a 3c reduction from the pump line.” This was a preview to Energy Minister Ben Martins’s announcement today of the monthly fuel price adjustment, he said. There has been an over-recovery on petrol prices of about 14c a litre this month. The levy took effect in 2009 when the fuel pipeline between Johannesburg and Durban reached full capacity. Deputy director of fuel pricing mechanisms Mashudu Sinthumule said the levy compensated oil companies that used alternative routes. “For companies on the coast who wanted to bring products inland via the road… we paid them 3c. That amount was added to the fuel price structure. We said we would do that until we found an alternative.” He said the new multi-product pipeline was completed in 2012, but due to a backlog of payments to oil companies, the levy could not be terminated earlier. – Sapa

Matjila to serve as acting Eskom head

Former chairman of the National Energy Regulator of SA Collin Matjila will take over the reins at Eskom until a successor to outgoing chief executive Brian Dames is found. Dames, who has led the utility for the past three years, will leave on Monday and Matjila, a non-executive director of Eskom, will become the acting chief executive from Tuesday. – Londiwe Buthelezi