The Department of Energy says people are unnecessarily using 95-unleaded petrol.
JOHANNESBURG - The Department of Energy is considering a proposal to stop setting the retail price of 93-Octane petrol.
The plan will see a price ceiling put in place for the fuel.
The department said the move will create competition, which will lower the price. It said people are unnecessarily using 95-unleaded petrol.
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The proposal will ease current pressure on the local refining industry to manufacture and import 95-ULP.
The department also believes the reduction of imports of 95-ULP will have a positive contribution to the trade balance.
The Fuel Retailers Association is not commenting on the proposal at this stage and said internal discussions are underway.
It has until October 18 to comment on the plan.
Independent economic analyst Professor Bonke Dumisa says the government’s plan to stop setting the retail price of 93 octane petrol is good news for consumers. The department is proposing setting a price ceiling for the fuel.