PRICE capping will create unfair competition in the fuel retail industry, resulting in thousands of job losses, the Fuel Retailers Association (FRA) said at the weekend.
On Friday, Department of Mineral Resources and Energy (DMRE) Minister Gwede Mantashe published a brief notice on page 106 of the weekly Government Gazette, seeking for comment on his “intention to introduce a price cap” for 93 octane.
This marked the commencement of a 30-day period for public input, before the process can proceed.
Moving to a maximum price, or price cap, would allow petrol retailers to discount fuel, however, they see fit, with price specials, bundles, or volume discounts.
Currently, the exact price of petrol is set by the government and selling the fuel at any other price is illegal.
Reggie Sibiya, the…