By Global economy is improving, and this can be evidenced in the fuel prices that are on a downward trajectory making affordability for emerging economies a reality. High fuel prices have also been a headache for South Africa, but that will soon be a thing of the past.
Addressing the AOW: Investing in African Energy Conference on Tuesday in Cape Town, the Minister for Department of Mineral Resources and Energy (DMRE) Mr Gwede Mantashe said government is currently engaged in discussions to reduce administered prices, including the price of fuel and electricity.
“Included in the discussions of fuel prices, are discussions on, but not limited to, the general fuel and the Road Accident Fund (RAF) levies. We intend to conclude these discussions in the shortest possible time for the country to realise the three priorities of the government of national unity,” said Mantashe.
Gwede Mantashe alluded to the fact that global energy security remains under threat attributed to the sustained geopolitical tensions, however, he said the energy market has improved leading to the decrease of basic fuel prices for the fifth consecutive month, thereby cushioning consumers against the rising cost of living.
To further instil confidence in South African energy market, he told industry captains and investors from Africa and the globe that the Government of National Unity (GNU) is united in the course of investing in energy and diversify it to include an energy mix market; which will create more opportunities and help grow the economy of the country by 8%.
Gwede Mantashe said the reduction in fuel and electricity prices will make life affordable for South Africans, as this will lead to price reduction in basic food products and other services. The move to reduce administered prices is part of the GNU’s three point ambition to drive inclusive economic growth and job creation; to reduce poverty and tackle the high cost of living and to build a capable, ethical, and developmental state.
