ENERGY Minister Peter Kapala says government wants people to get used to the monthly review of fuel prices because it is the international standard. .
In an interview, Kapala noted that South Africans were already used to this section.
“We are now following the international trend of fuel pricing. If the prices of fuel go up, we also adjust upwards. But adjusting upwards, it must go beyond 2.5 percent of our current pricing then it can trigger to go up. But otherwise, we can live within, if it is one percent, we can swallow that. (Monthly review of fuel) had an impact, if we let it run for so many months, the impact will be there. We need to get used to adjusting every month up, or down or to remain the same. It happens in South Africa, so people there are used to it. This is what we want to also get our people [to] get used to. So, if there is a dramatic increase on the world market, it will also affect us because we don’t make fuel. I am sure honourable (Paul) Kabuswe might give more information on the exploration that is going on,” he said.
And Kapala said government was slowly dismantling the US$ 524 million it owed to suppliers of petroleum products from the revenue it was collecting.
“Some of the contracts had interest on late payment. And our previous government sort of ignored it. So, we are trying to catch up on the payment,” said Kapala.