Govt considering new fuel refinery to mitigate against price hikes
The petrol price hit new highs on Wednesday and another increase is expected next month. Nomvula Mokonyane says external factors mainly contributed to this.
JOHANNESBURG - Minister of Communications Nomvula Mokonyane says government is considering building a new fuel refinery as part of a plan to better shield the country against global factors affecting the fuel price.
The minister made the announcement at a post-Cabinet briefing in Pretoria on Thursday.
The petrol price hit new highs on Wednesday and another increase is expected next month.
Mokonyane says external factors mainly contributed to the fuel price hike.
“The Brent crude oil dollar-dominated price has been affecting the general prices of petrol, diesel and paraffin. Our currency, the rand exchange rate to the US dollar, has also declined by more than 1% since the beginning of May this year with implications on fuel prices.”
(Edited by Thapelo Lekabe)