Liquid Fuel Wholesalers Association CEO Peter Morgan has warned that government must be cautious of knee-jerk reactions to fuel price pressures.
Proposals to deregulate 93-octane fuel in South Africa is a “knee-jerk reaction” and not a good idea, according to Liquid Fuel Wholesalers Association CEO Peter Morgan.with Cape Talk, Morgan explained that although everyone expects fuel prices to drop if 93-octane is deregulated, evidence from other countries suggests that this might not be the case.
Morgan highlighted two significant concerns over the proposed deregulation. The first is that car owners shouldn’t consider fuel prices before deciding which octane fuel to put in their vehicle. “We actually don’t have a clear understanding of how deregulation is going to affect the South African economy,” Morgan added.
“If you’re the service station owner, you get an Opex margin of R1.34. If you’re the investor, you get a Capex margin of 94c,” Morgan said.“If we look at the R1.34 and go through those numbers, you will see that 68c goes to wages. So if you have retailers with half their margins going to salary and wages, where are you going to cut your price?”
“If things continue this way, this is not sustainable and can land us in a situation where product supply is becoming too costly, and this, in turn, will affect security of supply which is definitely not the problem any South African wants to be in,” Sibiya added.to deregulate 93-octane fuel in South Africa was put forward in July 2022, allowing the public 30 days to comment.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Liquid Home announced as new household connectivity solution - HypertextLiquid Home is set to roll out to households in Zambia, Uganda, DRC, Kenya, Tanzania, Botswana, Zimbabwe and Rwanda.
Read more »
South Africa’s fuel rewards programmes compared – how much you actually saveWith South African motorists looking ahead to another possible petrol price hike in November, there’s growing desperation to save as much as one can when filling up.
Read more »
Market data — October 16 2022Market data including bonds and fuel prices
Read more »
Worries over jet fuel supply and flights in South Africa as festive season approachesThe Airlines Association of South Africa (AASA) has warned that knock-on effects from the Transnet strike could exacerbate fuel supply issues and result in a nationwide jet fuel shortage. This devastating prospect could leave airlines grounded during the festive season.
Read more »
Super-rich keeping flying private despite surging fuel costs making charters even more expensive | BusinessinsiderThe cost of chartering a private jet has increased by as much as 35% during the last 12 months, one CEO said, but that has failed to dampen demand.
Read more »
Motorists should prepare for fuel price increases in November, warns AAMotorists should prepare for fuel price increases in November, warns AA: Consumers should brace themselves for more expensive fuel in November as mid-month data from the Central Energy Fund is showing increases in the prices of all fuels are likely in…
Read more »