Premier Alan Winde has written to the Presidency and office of the Minister of Mineral and Petroleum Resources to raise his deep concern over what appears to be the increased hoarding of fuel stock by some suppliers.
“This is unethical. I implore suppliers to continue providing fuel for their clients. Withholding supply places the economy and livelihoods, especially in the province’s agriculture sector, which accounts for over 50% of the entire country’s exports, at great risk. I have written to the President and Minister requesting their urgent intervention to ensure stability and prevent avoidable disruptions to primary sectors of our economy,” Premier Winde stated.
The Competition Commission South Africa has also indicated that price gouging is illegal. Any provider increasing prices in advance of any actual fuel cost hike or increasing prices far more than their actual cost increases, risks being prosecuted and found guilty of price gouging. Complaints should be submitted to ccsa@compcom.co.za.
The Western Cape Government is aware of isolated incidents where filling stations in parts of the province are running short of fuel supply or have depleted their stocks and are unable to source certain fuel. Residents are asked to submit reports on fuel shortages to the Department of Mineral and Petroleum Resources at fuel.complaints@dmpr.gov.za.
Diesel supply appears to be the worst affected due to high demand, particularly in the agriculture sector.
The Provincial Disaster Management Centre (PDMC) is monitoring the situation, along with the Fuel Industry Association of South Africa (FIASA) and other key stakeholders.
This week FIASA reassured the provincial government that there is currently sufficient fuel available nationally to meet demand. Therefore, any end user fuel shortages are very likely the result of market manipulation.
The Premier added, “Provinces have no mandate over fuel supply matters. It is, therefore, critical that national government steps in and takes decisive action against unscrupulous suppliers. There actions can have the potential of derailing the entire country’s economic recovery.”
