Energy Minister Jeff Radebe and his top officials were in parliament to explain what the government is doing to alleviate the effects of the fuel price.
FILE: Photo: EWN.
CAPE TOWN – The Energy Department says it does not believe that deregulation of the fuel price is feasible for consumers, industry or the economy.
It even says that it could drive up fuel costs.
Energy Minister Jeff Radebe and his top officials were in parliament on Tuesday to explain what the government is doing to limit the effects of the fuel price, which is at a historically high level.
The Ministry of Energy says that deregulating the fuel price can lead to massive job losses.
Deputy Director General Tseliso Maqubela says that retailers will almost certainly opt for self-service stations.
"So you would lose those 50,000 employees at night – is that the policy position that would serve South Africa better?"
He says there is no guarantee that deregulation would reduce fuel costs because the country's distribution infrastructure is inadequate.
"There is only one pipeline that takes fuel from the coast, and all companies must use that pipeline."
Maqubela says he also does not believe that the government could transform the sector if deregulation was allowed.
(Edited by Zamangwane Shange)