hike
2 August 2006
Minister of Minerals and Energy, Ms Buyelwa Sonjica, MP, today expressed her
thoughts at the unfortunate but unavoidable hike in the price of fuel.
Minister Sonjica said that fuel hikes are inflationary and therefore impact
on all spheres of life. This according to the Minister is felt even more by the
poorest of the poor.
âSouth Africa is a consumer of imported crude oil and does not have control
over the pricing of fuel. The country also pays for these imports in foreign
currency namely dollars, therefore the exchange rate also impacts directly on
the internal price of all finished products,â said Minister Sonjica.
Minister Sonjica says that the impact of the increase will be felt mainly by
the poorest of the poor in the country. âThe domino effect on the rest of the
economy is real but also difficult to be mitigated against. Everything that has
to do with transport will obviously be affected and that is worrying,â the
Minister said.
The government also realises that the situation in the Middle East impacts
on the overall world fuel prices. The government therefore is keen on a speedy
resolution of the situation with the hope that there will be a stabilisation of
the oil price.
The government through the Department of Minerals and Energy (DME) and
related institutions co-operates with other governments in search of
alternative fuels and thus ensure the security of supply for the country.
Enquiries:
Bontle Mafuna
Chief Director: Communication
Tel: (012) 317 8086
Fax: (012) 322 4954
Cell: 082 571 4310
E-mail: bontle.mafuna@dme.gov.za
Issued by: Department of Minerals and Energy
2 August 2006
Source: Department of Minerals and Energy (http://www.publicworks.gov.za/)
