Independent Online

Wednesday, July 6, 2022

Like us on FacebookFollow us on TwitterView weather by locationView market indicators

Enoch Godongwana and Gwede Mantashe working on mitigating high fuel prices

Finance Minister Enoch Godongwana and Minister of Mineral Resaurces Gwede Mantashe. Picture: Phando Jikelo/African News Agency (ANA) Archives

Finance Minister Enoch Godongwana and Minister of Mineral Resaurces Gwede Mantashe. Picture: Phando Jikelo/African News Agency (ANA) Archives

Published Mar 23, 2022

Share

Cape Town - Finance Minister Enoch Godongwana says they are in discussions with the Department of Mineral Resources and Energy to mitigate the high prices of fuel.

This is due to the conflict in Ukraine pushing up the oil prices across the globe.

Story continues below Advertisement

Godongwana, who was answering questions in Parliament on Wednesday, said they wanted to cushion consumers against the rise in prices of fuel and the plan in place was a short-term measure and a long-term solution.

As a short-term measure they want to mitigate against the expected increase in prices of fuel in April and May.

Godongwana said their discussions with the Department of Mineral Resources and Energy would ensure that consumers were protected because the conflict is still raging in Ukraine.

He said South Africa wanted an end to the conflict and called for both Russia and Ukraine to reach a settlement.

“With the situation still developing (in Ukraine) and so much uncertain it is relatively difficult at this stage to quantify the potential impact with precision and confidence.

“The issue of cushioning the impact, particularly of the fuel price, is a matter which is given urgent attention in government and therefore we will make the necessary announcement soon because it’s our intention that such a mitigation measure must focus on April and May.

Story continues below Advertisement

“I did indicate to the honourable member that that’s what we are working on,” said Godongwana.

He told MPs that work was being done and they wanted to ensure they found a solution.

He said it was an urgent matter because of the conflict that was still going on.

Story continues below Advertisement

“I said work is being done in this regard.

“What is making the decision more urgent is the impact of the Russia-Ukraine conflict which is moving the price of fuel faster than we have thought.

“The work that we are doing is intended to respond to the immediate challenge that we are facing and I think a decision is going to be announced fairly soon.

Story continues below Advertisement

“I can’t reveal the details at this stage, we are in a sensitive discussion with DMRE.

“Clearly, there is an intention on the part of government to make an immediate step, in particular, for April and May where we mitigate the effects of the fuel price increases even as a temporary measure for those two months,” said Godongwana.

[email protected]

Political Bureau

Share