The Energy Department Blames Opec & Partners for Soaring Fuel Prices
The Energy Department has blamed the hefty fuel price increase on the Organisation of the Petroleum Exporting Countries (OPEC) and its partners.
On Monday the department announced that the price of both grades of petrol 93 and 95 Octane would go up by 81 cents a litre.
The department later admitted it made a mistake and adjusted the price to 75 cents per litre.
The department said it was disappointed by last month’s decision of OPEC and its partners not to release more oil to the market in the face of high oil prices.
“Increasing oil production is a lever that is well within OPEC’s control and for reasons best known to them they are unwilling to use it.”
The department said the record-breaking increases are not only happening to South Africa.
“This is a global energy challenge and many governments believe that OPEC and its partners can do more to alleviate the situation.”
The department said there are two reasons for the petrol prices increases which include the price of crude oil for refined fuels doubling in the last twelve months from 40 to over 80 US Dollars per Barrel and the imminent shortage of heating fuels at the onset of Northern hemisphere winter season.
The department emphasised that the upward trend in the petrol price has been unabating and economies around the world including South Africa are going to be negatively impacted as the prices of goods could rise given the increasing transport costs.
