19 Aug 2020

Soaring prices of Liquefied Petroleum Gas (LPG) have been attributed to the recent price increase at the refineries in South Africa.

In an interview with BOPA on Tuesday, Permanent Secretary in the Ministry of Mineral Resources, Green Technology & Energy Security Mr Mmetla Masire said since LPG prices were not regulated in most cases, an increase in demand lead to price increases.

Mr Masire explained that his ministry had previously held formal talks with LPG retailers to assess the current gas situation and he was happy that the supply of gas had improved.

“After a fruitful meeting with LPG vendors, we noted that the supply of gas across the country had improved, however, it is important to note that in the region, LPG pricing is not regulated and the refineries in South Africa have increased their pricing hence an increase of gas prices in the country,” he said.

Furthermore, Mr Masire said his ministry had recommended that the LPG companies revive their association as it would be easier in future to engage in talks with association representatives.

He also advised the companies to not take advantage of the situation but rather work together and be mindful when setting prices to give Batswana the commodity at reasonable rates.

Meanwhile, Mr Masire said that the fuel supply situation across the country had improved and he applauded the public for complying with the Essential Supplies and Services (petroleum) Regulations, 2020 put in place by the government to stabilise the fuel supply situation.

However, he said the country was not out of the woods yet and as such some of restrictions that were put in place would not be lifted immediately.

“ The increase of the selling of fuel which is currently restricted at P250 per vehicle at a time including the number of days that a jerry can be used are some of the restrictions that will be reviewed in due course,” he explained. BOPA