Fin24 reports that according to Mineral Resources and Energy Minister Gwede Mantashe, discussions are under way with Finance Minister Enoch Godongwana to review the pricing methodology for petrol.

The minister made the remark on the sidelines of the Africa Energy Indaba conference, which took place in Cape Town on Tuesday. During his earlier address to the conference, Mantashe noted that the conflict between Russia and Ukraine was driving up crude oil prices, translating into "severely high fuel prices" for individual countries. According to Mantashe, the fuel tax relief announced in last week's national budget was effectively "corroded" by the petrol costs. No hikes to the fuel levy or the Road Accident Fund levy were introduced for this year. "We are not responsible for the price. We are responsible for formulas. We are discussing with the minister of finance whether or not we should review how we calculate [the formula]," Mantashe said. Last week, Godongwana made an off-the-cuff remark in his budget speech that he was consulting with Mantashe. "The intention is review the structure of the petrol price going forward – to be competitive in this economy," Godongwana said. In the 2022 Budget Review, National Treasury highlighted that administered price inflation – mainly from electricity and fuel prices – increased at an annual average of 8.2% between 2011 and 2021.

• Read the full original of the report in the above regard by Lameez Omarjee at Fin24

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