Fuel price shock anticipated for Nelson Mandela Bay
Wholesalers have submitted an application to reclassify the Nelson Mandela Bay fuel price from ‘coastal’ to ‘inland’. Here’s the reasoning behind it…
This morning, South Africans are benefiting from the fifth straight monthly fuel price drop. However, as people across the country celebrate their savings, an urgent application has been filed to change Nelson Mandela Bay’s fuel price classification from ‘coastal’ to ‘inland’. According to Daily Maverick, Mineral Resources and Energy Minister Gwede Mantashe will preside over the matter of the Nelson Mandela Bay fuel price.
NELSON MANDELA BAY FUEL PRICE
At midnight last night (Tuesday 1 October 2024), the fuel price dropped yet again between 106 and 114 cents across petrol and diesel grades, and regions. Specifically, the cheapest 93-grade petrol at the coast is now less than R20 per litre. However, the R19.94-per-litre figure is lower than an equivalent R20.73 for the same grade retailed inland. This discrepancy occurs due to the added cost of moving fuel from ports with road tankers.
Now, thanks in part to Transnet, the Nelson Mandela Bay fuel price looks set to be rezoned, with the added cost passed on to motorists. This is because the Liquid Fuel Wholesalers Association (LFWA) says it is currently unable to use the Port Elizabeth Harbour due to a damaged tanker berth. Back in June 2024, a vessel carrying LPG gas collided with and damaged the harbour. And Transnet is yet to start the repair process.
PRICE PAIN PASSED TO MOTORISTS
With yet another fuel price drop anticipated in November 2024 (potentially the sixth in a row), it’s Nelson Mandela Bay motorists who will miss out on big savings. Nevertheless, Transnet says it has triggered an emergency procurement process to assess the damage and speed up repairs. With that said, repair work is still only expected to start early in 2025.
LFWA argues wholesalers are fetching fuel from East London Harbour and transporting it to Nelson Mandela Bay by road. Therefore, this constitutes the Nelson Mandela Bay fuel price be like an any other ‘inland’ destination. Accordingly, the situation creates an unfair business environment, say the wholesalers, as they are the ones incurring the cost.
If approved by the minister, rezoning prices are expected to remain in place until such time as Transnet has repaired the tanker berth in Port Elizabeth Harbour. We’ll keep you posted as this story unfolds …