business

June 17, 2022

NEO SENOKO

2 min read

M180 million windfall to subsidise fuel

M180 million windfall to subsidise fuel

The Minister of Energy, Mohapi Mohapinyana

Story highlights

  • Pump prices soar
  • Prices of food and other commodities also increase

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GOVERNMENT has set aside M30 million a month for the next six months to subsidise the ever skyrocketing fuel prices, a move that will see the pump price fixed effective from July until December.

The Minister of Energy, Mohapi Mohapinyana said in a statement that the decision was made with the Ministry of Finance “to meet consumers halfway during these trying times” when prices keep increasing due to the war between Russia and Ukraine.

Mr Mohapinyana said a monitoring committee comprising ministries of finance and energy, Petroleum Fund and the Auditor General had since been established to monitor and ensure things went as planned.

As a result, prices of petrol 93 will remain fixed at M22.20 per litre while petrol 95 will remain at M22.65 per litre. Diesel prices will stay at M23.05 a litre and paraffin will maintain a fixed price of M17.80 a litre.

“Should there be any form of changes needed, proper procedures shall be followed”, said Mohapinyana. “I therefore urge the business community to operate in line with the prices that will be released to the public”.

The surge in prices, which continues to be influenced by the Russia and Ukraine conflict, has seen supply chain bottlenecks and a tightening of global monetary policy.

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Unfavorable changes in the exchange rate and global oil prices have not only let to even larger increases in fuel prices, but to prices of food and other commodities.

Meanwhile South Africa, which introduced the fuel subsidy earlier, has also extended such a windfall by another two months to help cushion consumers and business against the impact of rising crude prices stemming from the Russia/Ukraine conflict.

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