The Energy Department has ruled out the possibility of introducing a subsidy to cushion the effect of fuel hikes. Energy Department officials have been briefing Parliament’s oversight committee on Tuesday.

The Department says the latest increase is largely due to geopolitics in the major oil producing countries. But it insists things could have been worse if the rand had not strengthened against the dollar.

It also turned down suggestions to ease the huge fuel hikes from month to month, saying this requires a R4 billion fund. The Energy department dismissed the idea of subsidies, arguing that these are unsustainable.

The petrol price in Gauteng will reach a record high at mid-night tonight — 95 Octane will cost R13.23 a litre in Gauteng, and R12.86 at the coast. The price of all grades of petrol will jump by 32 cents a litre. Diesel price rises by just under 33 cents.

Meanwhile the South African National Taxi Council (Santaco) has warned taxi commuters to expect fare increase due to the hike in the fuel price. The council says the increase will vary, depending on the routes and distances of each association.
For more http://www.sabc.co.za