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SA needs new petrol plan - IFP

Johannesburg - The government should consider new ways of obtaining fuel if the price of petrol continues to rise, the Inkatha Freedom Party (IFP) said on Monday.

"Government must look at other options for fuelling our economy," said IFP MP Jacobus van der Merwe.

"We should be heavily investing in finding our own fuel resources and in biofuels," he said, adding that the government should be encouraging biofuels research and development.

On Friday, the energy department announced the price of unleaded 95 petrol would increase by 84 cents a litre on Wednesday.

The price of unleaded 93 petrol would increase by 84 cents a litre, and that of diesel with a 0.05% sulphur content by 78.2 cents a litre.

Diesel containing 0.005% sulphur would cost 78.2 cents more a litre, and the maximum retail price for liquid petroleum gas would go up 129 cents a kilogram.

Van der Merwe said the fuel price increases would have a major negative effect on most South Africans.

"Increases in the petrol price will not only result in South Africans having to pay more at the pump, but will also increase the prices of goods and services in the country," he said.

The energy department said the crude oil price's effect on the basic fuel price had been minimal. This was because the Brent crude oil price increased on average by $1 (about R10) a barrel during the current fuel price review period (31 May to 27 June).

However, the rand had sharply weakened against the US dollar, contributing to an increase in the basic fuel price of at least 57 cents a litre.

"The weaker rand is mainly attributed to the slowdown in the economic growth in emerging markets and the expected slump in the demand of commodities," the department said.

The rand's vulnerability was also due to negative sentiment, emanating from anticipated labour disputes and strikes.

The Congress of SA Trade Unions (Cosatu) said energy costs were spiralling out of control.

"The increase of petrol will soon see buses and taxis increase their fees. This will have a devastating effect on the poor," said Cosatu Western Cape secretary Tony Ehrenreich.

High fuel prices also made it "nearly impossible" for people to search for employment, he said.


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