Nelson Mandela Bay businesses and residents must not be penalised with higher fuel prices, to compensate fuel wholesalers for additional costs of trucking fuel to the metro, due to repairing of the fuel berth in the Port of Port Elizabeth by Transnet.
If Minister of Mineral & Petroleum Resources, Gwede Mantashe approves an application by the Liquid Fuels Wholesalers Association (LFWA) to temporarily rezone the metro and surrounding areas as an “inland region” with respect to fuel prices, the anticipated petrol price decrease for October could be reduced by as much as 30c/litre. , For example, a decrease of R1,20 per litre for ULP would result in a revised petrol price decrease of R0,90 per litre for Nelson Mandela Bay. This would also erode the benefits of any future fuel price decreases.
The Nelson Mandela Bay Business Chamber, representing approximately 700 businesses in the metro, has called on the Minister to instead implement an equitable solution that addresses the concerns of the LFWA, but does not unfairly disadvantage local businesses and residents.
“While we accept that the LFWA’s members are in the untenable position of incurring additional costs that they cannot recover, it is blatantly unfair to transfer this burden onto the shoulders of the people and citizens of Nelson Mandela Bay.
“The Eastern Cape economy is in recession and has amongst the highest unemployment rates in the country. The impact of an unnecessary and unfair increase in fuel prices is of grave concern, especially given the knock-on effect on food and transportation costs, as well as the costs of doing business in a metro where we need to be protecting investments and jobs,” NMB Business Chamber chief executive Denise van Huyssteen said.
The threat to fuel prices and security of fuel supply to the metro follows an accident in the Port of Port Elizabeth in June, that caused the closure of the fuel berth, requiring fuel to be delivered instead by road from the East London harbour to the metro.
Van Huyssteen said that the LFWA had advised the Chamber that the extra costs incurred by the fuel wholesalers and transporters cannot be recovered under the wholesale fuel pricing regulations, while indications from Transnet are that the berth will not be in operation before January next year.
“While the LFWA argues that the increase to inland fuel pricing will be ‘but a small fraction’ of the October price reduction, it remains unacceptable that businesses and residents in the metro should pay the price for a problem not of their making.
“Transnet must expedite the repairs with the necessary urgency and in the meantime the ministers of Transport and of Mineral Resources and Energy need to find a workable solution to address the cost concerns and the delivery of fuel to a city with two ports,” Van Huyssteen said.
The Business Chamber previously wrote to the ministers of Transport, Mineral Resources and Energy, and Trade, Industry and Competition in August following a request by the LFWA that the metro be exempted from the September fuel price decrease and which fortunately did not transpire. Van Huyssteen said that a further appeal had now been sent to Minister Mantashe to reject the LFWA’s rezoning application and to find a workable solution that would not pass the fuel industry’s additional costs onto consumers.
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Gqeberha (Port Elizabeth) is a beautiful city located on the coast in the Eastern Cape Province and is known as the “Friendly City”, with other towns in this district including Kariega (Uitenage) and Despatch. Forming part of the Nelson Mandela Bay Metro, Gqeberha has stunning beaches, historical museums and memorials, award-winning wildlife sanctuaries and super friendly people, making it a spectacular holiday destination.
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