Motorists in NMB to feel the pinch as fuel wholesalers get reprieve

JOHANNESBURG - Motorists in Nelson Mandela Bay won't get all the joy at the pumps following a decision by the Department of Mineral and Petroleum Resources (DMPR).

This week, the department granted fuel wholesalers an application to temporarily re-zone the metro as an inland region to avert profit losses from the fuel price reductions - which took effect on Wednesday.

Industry leaders wrote to the department last week, calling for reprieve for fuel wholesalers. 

The industry sounded the alarm on the increased cost of doing business as Transnet continues to grapple with logistics challenges at some of the key ports. 

The Port Elizabeth Harbour remains out of commission following an accident in June, while the Port of Ngqura doesn’t have facilities for tankers to deliver fuel. 

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This means fuel wholesalers have been paying more to haul fuel from other regions. 

More than protecting profits, the industry said their request was about fuel security. 

Fuel wholesalers have now been given a 30% break. 

This means while other coastal cities are now paying R19.94 per litre for 93 petrol, motorists in Gqeberha will be charged R20.77 per litre. 

For 95 petrol, other coastal cities will pay R20.26 per litre, but R21.09 in Gqeberha. 

DMPR Minister Gwede Mantashe said he also weighed the impact on consumers. 

"We cannot take a decision that protects wholesalers at the cost of the consumer. That was the basis of that decision," he said.

The intervention is expected to remain in place until Transnet has fixed the affected port.