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The Department of Mineral Resources and Energy (DMRE) has assured the nation that there are enough petroleum products. In a statement issued on Thursday, 15 July 2021, the department emphasised, “The DMRE assures the nation that while there are challenges with regards the movement of petroleum products to some parts of the country, there is sufficient product and government is working to secure the movement of all petroleum products.”
As a result, the department discouraged the public from panic buying and hoarding, as this action will exacerbate the current challenges.
In recent days, parts of Gauteng and KwaZulu-Natal have experienced extensive violence, resulting in the death of civilians, the looting of public and private property, destruction of infrastructure, and the suspension of essential services. Further, noting that the blockading of key infrastructure routes has also made mobility difficult.
In the interests of public safety, the department has issued “Regulations Prohibiting The Sale And Dispensing Of Petrol And Diesel Into Containers”.
The Regulation was issued in terms of section 2(1) (a) read with section 12C(1)(a)(v)(aa) of the Petroleum Products Act of 1977 and serves to prohibit retail sales of petroleum products to members of the public in portable containers.
The Regulations and can be accessed at www.energy.gov.za and www.dmr.gov.za. The department declared it is continuing to monitor the safety and security of the energy and mining sectors.
Minister of Mineral Resources and Energy, Gwede Mantashe, continues to interact with all energy and mining sector role players during this time.
Mantashe accentuated the importance for role players and stakeholders to continue strengthening the working bonds that have ensured the resilience of the sectors to date – even while fighting the current Coronavirus pandemic.
The Minister has also encouraged sectors to share their experiences of the current unrest and their risk mitigation strategies and plans as the energy and mining sectors are the drivers of the country’s economy.
“The DMRE encourages the mining and energy sectors to remain steadfast in working towards maintaining the safety and security of their operations and personnel. The department will continue to engage with the executives, as well as the various labour unions of the sector.”
In addition to this, the Automobile Association (AA) warns that unaudited mid-month fuel price data from the Central Energy Fund reflected a risk of substantial fuel price hikes at month-end.
The AA states, “Fuel prices were already trending higher before the widespread looting and unrest of the past few day. But now, the daily Rand/US dollar exchange rate has spiked from R14.35 to nearly R14.80 since 12 June 2021. South Africa imports a lot of fuel, which will inevitably cost more in Rand terms. Meanwhile, international oil prices remain on the advance, adding further pressure.”
The mid-month data indicates that petrol is set for an increase of 87 cents a litre, diesel 58 cents and illuminating paraffin 56 cents, with the AA confirming it expects little respite before month-end.
The Association notes that while the supply of fuel will not push the prices of fuels higher, the weakening Rand because of the riots will play a notable role as the exchange rate is a crucial indicator for the local fuel price. With this in mind, motorists are urged to practice restraint during the upcoming days, refraining from bulk buying and making unnecessary trips.
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