Minister Gwede Mantashe announces the adjustment of fuel prices with effect from 1 June 2022

The Minister of Mineral Resources and Energy, Mr Gwede Mantashe, announces the adjustment of fuel prices based on current local and international factors with effect from the 1st of June 2022.

South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs.

The main reasons for the fuel price adjustments are due to:

1. Crude oil prices

The average Brent Crude oil price increased from 104.78 US Dollars (USD) to 115.00 USD during the period under review. The main contributing factors are:

(a) Increasing demand amid summer driving season in the northern hemisphere.

(b) EU discussions regarding imposing sanctions on crude oil and petroleum products from Russia.

(c) The increase of crude oil throughput by refiners to take advantage of high refining margins.

2. International petroleum product prices

The average international product prices of petrol, diesel and Illuminating Paraffin increased during the period under review while the price of LPG decreased. In addition to the tight middle distillates market, the petrol market is also getting tight amid summer driving season in the Northern Hemisphere due to decreasing inventories of finished products. This has led to higher refining margins resulting in high prices of finished products. The movement in product prices has led to higher contributions to the Basic Fuel Price of petrol 95 ULP and 93 ULP by 143.39 cents per litre (c/l) and 134.19 c/l respectively, diesel 500ppm and 50ppm by 4.75 c/l and 0.74 c/l respectively, while the contribution to illuminating paraffin was 50.86 c/l.

3. Rand/US Dollar exchange rate

The Rand depreciated, on average, against the US Dollar (USD), from 14.90 to 15.95 Rand per USD during the period under review when compared to the previous one. This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 99.49 c/l, 104.69 c/l and 104.47 c/l, respectively.

4. Short-term Relief Measure to Address Fuel Price Increases

The temporary relief which was for two months (April and May 2022) ends on the 31st of May 2022. On the 31st of May 2022, the Minister of Finance has announced the extension of the temporary reduction in the general fuel levy by 150.0 c/l until the 5th of July 2022.

5. Implementation of the Slate Levy

As at the end of April 2022, the cumulative slate amounted to a negative balance for petrol and diesel of R11,99 billion. In line with the provisions of the Self-Adjusting Slate Levy Mechanism, there is no change on the Slate Levy to be implemented into the price structures of petrol and diesel with effect from the 1st of June 2022. The slate levy applicable remains 52,62 c/l.

6. Termination and Removal of the Demand Side Management Levy (DSML) of 10 cents per litre from the price structure of Unleaded Petrol 95 Octane in the inland market

The Minister of Mineral Resources and Energy in concurrence with the Minister of Finance has approved the removal of the Demand Side Management Levy (DSML) from the price structure of Unleaded Petrol (ULP) 95 Octane in the inland market. This will be implemented on the 1st of June 2022. The levy of 10.00 c/l was introduced in the price structures of 95 ULP that is sold in the inland market during 2005. The purpose of the levy was to discourage motorists from wasting octane by using 95 ULP instead of 93 ULP in their vehicles. The termination and removal of the DMSL of 10.00 c/l will provide financial relief to motorists whose vehicles utilise ULP 95 Octane in the inland market.

Based on current local and international factors, the fuel prices for June 2022 will be adjusted as follows:

• Petrol (both 93 ULP and LRP): two hundred and forty three cents per litre (243.00 c/l) increase;

• Petrol (both 95 ULP and LRP): two hundred and thirty three cents per litre (233.00 c/l) increase;

• Diesel (0.05% sulphur): one hundred and ten cents per litre (110.00 c/l) increase;

• Diesel (0.005% sulphur): one hundred and seven cents per litre (107.00 c/l) increase;

• Illuminating Paraffin (wholesale): one hundred and fifty six cents per litre (156.00 c/l) increase;

• SMNRP for IP: two hundred and eight cents per litre (208.00 c/l) increase;

• Maximum LPGas Retail Price: fifty one cents per kilogram (51.00 c/kg) decrease.

Source: Government of South Africa

Man to appear in court following shooting in Wentworth

DURBAN – On 30 May 2022 at 16:30, the victim was standing in his garden on Silvertree Road, when a man who walking past his home, opened fire on him. The suspect fired several shots at him which fortunately missed him.

The suspect ran up the road past a metro police vehicle into nearby flats. The metro police officers immediately called for assistance and went into the flats to search for the suspect. They found the suspect hiding in a flat. He was searched but no firearm was found on him. He was arrested for attempted murder and detained at Wentworth SAPS. Detectives will profile the suspect and see if he can be linked to any other cases reported in Wentworth and surrounding areas. The 23-year-old suspect will be appearing in Durban Magistrate Court tomorrow

Source: South African Police Service

Ministers Gwede Mantashe and Enoch Godongwana on temporary reduction in general fuel levy

Extension of the temporary reduction in the general fuel levy

On 31 March 2022 the Minister of Finance and the Minister of Mineral Resources and Energy jointly announced a temporary reduction in the general fuel levy of R1.50 per litre from Wednesday 6 April 2022 until 31 May 2022 to provide limited short term relief to households from rising fuel prices following the Russia/Ukraine conflict. The relief was to be funded by a liquidation of a portion of the strategic crude oil reserves.

Since this announcement, the continuation of the Russia/Ukraine conflict, supply chain bottle-necks and a tightening of global monetary policy have led to further unfavourable changes in the two key drivers of the regulated petrol price, the exchange rate and the global oil price. These events have led to even larger increases in fuel prices compared to a few months ago when the temporary fuel levy relief was introduced.

The withdrawal of the temporary relief in the general fuel levy on 31 March 2022, as per the original announcement, would contribute to an increase in petrol prices of close to R4 per litre, and push prices of 95 octane unleaded petrol (ULP) to above R25 per litre, an increase of just under 20 per cent next month.

Due to this significant monthly price increase, the Minister of Finance has today submitted a letter to the Speaker of the National Assembly, requesting the tabling of a two-month proposal for the extension of the reduction in the general fuel levy. This will take the form of a continuation of the relief of R1.50 per litre for the first month, from 1 June 2022 to 6 July 2022, and then a downward adjustment to the relief for the second month to 75c per litre from 7 July 2022 to 2 August 2022. The temporary relief will be withdrawn from 3 August 2022. The Chair of the National Council of Provinces has also been informed of this proposal.

The revenue foregone from the extension of the relief is estimated at R4.5 billion. Unlike the previous announcement, this proposal is expected to have an impact on the fiscal framework as it will not be fully funded through a sale of strategic oil stocks. Government remains committed to the fiscal framework outlined in the Budget 2022. The proposed temporary reduction in the fuel levy will be accommodated in the current fiscal framework in a manner that is consistent with the fiscal strategy outlined in the Budget. Any changes, if required, will be announced at the time of the 2022 Medium Term Budget Policy Statement.

The temporary reduction in the general fuel levy will only smoothen the impact of persistently higher fuel prices on consumers and businesses, as the economy will need to adjust to this new reality. As announced on 31 March 2022, Government will also take further measures to help reduce fuel prices in a more sustainable manner. From 1 June 2022, the DMRE will remove the demand side management levy of 10c per litre that has been applied to inland 95 ULP. After a review and consultation by the DMRE, it is proposed that the basic fuel price also be decreased by 3c per litre in the coming months.

Government intends to continue with consultations and proposals to remove the price cap on 93 ULP, which will partially deregulate the market and introduce more competition to lower pump prices. A review on the Regulatory Accounting System (which includes the retail margin, wholesale margin and secondary storage and distribution margins) will be completed by the DMRE to assess the potential to lower margins over the medium term.

The DMRE will publish further details within the next hour on the actual adjustment of fuel prices with effect from 1 June 2022.

Government will continue to monitor the impact off the Russia/Ukraine conflict and zero-COVID policies, which continue to have an impact on energy and food prices and result in supply chain shocks, with the aim of investigating further measures to make households and businesses less vulnerable to such shocks.

Source: Government of South Africa

Anti-Gang Unit recover three firearms

GQEBERHA – In an intelligence driven operation, Anti-Gang Unit members in Gqeberha recovered three firearms this morning, 31 May 2022 in Salsoneville.

It is alleged that at about 09:00. AGU members operationalised information received that a particular gang were storing their firearms at a house in Catherine Street. The premises and vehicles on the property were thoroughly searched. Three firearms were found in a cooler bag in a blue VW Golf parked in the yard. The firearms (two 9mm pistols and a 7, 65 pistol) as well as 46 rounds of ammunition were confiscated. No arrests were made. An enquiry docket was opened for further investigation.

The serial number of one firearm was filed off while the other two had serial numbers. Ownership of all three firearms are yet to be established. The firearms will be sent to ballistics for analysis.

Acting Nelson Mandela Bay District Commissioner, Brigadier Thandiswa Kupiso praised the members for their swift reaction to the information received. ‘It is a known fact that firearms are the weapon of choice of the gangsters therefore every effort must be made to strip them of the possession of these weapons. In so doing, the safety of citizens including the youth in these areas will be protected. We appeal to the communities to blow the whistle on these criminals and to report either voluntarily or anonymously any suspicious activity to police,’ added Brig Kupiso.

Source: South African Police Service

National Planning Commission supports implementation of structural reforms

The National Planning Commission (NPC) and Operation Vulindlela (OV) will be working closely to support implementation of the country’s economic priorities and structural reforms. This emerged at a meeting between the two entities held on 26th May 2022.

Since its appointment by President Cyril Ramaphosa in December last year, the NPC has convened a series of engagements with key stakeholders who play a leading role in economic policy and implementation. The aim of these sessions is to provide the NPC with a nuanced understanding of these challenges so that its advice response is appropriately framed.

Operation Vulindlela works to accelerate reform by identifying key structural challenges and assisting to unlock these through a variety of agile and active interventions, including providing recommendations to the President and Cabinet where a decision or agreement is required.

The reforms are intended to change the structure of the economy to reduce input costs, lower barriers to entry and increase competition. Lower costs and greater efficiency increase the competitiveness of the economy and create new opportunities for inclusive growth, investment and job creation.

In its meeting with the NPC, Operation Vulindlela provided a progress report on the five priority areas that comprise the economic reform agenda to fundamentally transform the economy.

The five priorities identify targeted interventions:

• Reforms in the electricity sector will stabilise our energy supply, reduce the risk of load shedding and accelerate the transition to renewable energy sources.

• Reforms in the digital communications sector will reduce the cost of data and broadband, expand internet access to low-income households and unlock new investment in telecommunications infrastructure.

• Reforms in the water sector aim to increase investment in the maintenance and construction of water infrastructure and improve water quality.

• Reforms in the transport sector aim to improve the efficiency of South Africa’s logistics infrastructure, helping to grow exports.

• Reforms to the visa regime aim to attract skills and promote tourism in South Africa.

After an informative and robust engagement session between the OV and NPC, the two entities decided to engage regularly to help shape the OV’s emerging list of economic priorities, particularly as implementation progress is unlocked and further interventions must be made.

About the NPC

The National Planning Commission is an independent advisory body to government comprising experts from the private sector, academia and other stakeholders focusing on South Africa’s medium- and longer-term requirements as defined in the National Development Plan. The NPC’s work covers economic, social and governance aspects of the future.

About Operation Vulindlela

Operation Vulindlela was established in October 2020 as a joint initiative of the Presidency and National Treasury to accelerate the implementation of structural reforms that are captured in the Economic Reconstruction and Recovery Plan.

Source: Government of South Africa

Missing person sought by Kwamashu police

DURBAN: KwaMashu police are appealing to the community for assistance with regards to a missing person, Bongumenzi Nxumalo (34) from KwaMashu. He was last seen on 6 May 2022 at 10:00 on Bhejane Road when he left his home and he has not been seen since. He is fair in complexion and was wearing blue jeans and a white t-shirt.

We appeal to anyone who may have information on his whereabouts to contact Detective Warrant Officer Luthuli on 082 337 5453 / 031 325 6611 or Crime Stop on 08600 10111 or by using MySAPS app.

Source: South African Police Service

MEC Reagen Allen on registered neighbourhood watch members

Western Cape has more than 16 000 registered neighbourhood watch members

Western Cape Minister of Police Oversight and Community Safety Reagen Allen says, he is pleased to note that there are currently 16 084 registered Neighbourhood Watch (NHW) members in 441 accredited NHW’s across the province.

Minister Allen said: “These brave men and women who are diligently fighting crime in their respective communities should be applauded for their daily efforts.

They make immense sacrifices and for this we’re truly grateful. It will be impossible to thank them enough, but their active involvement in combating crime just proves that the greater society shares my hope that we can overcome this evil in our communities.

Just yesterday I signed the accreditation certificates of another group of NHW’s who will also join the fight to combat crime. Some have interesting, yet inspirational names, with one being called, Zero Crime Neighbourhood Watch.”

Starting a NHW is fairly easy. Depending on the geography of your area and what the support level is from your community, the basics to starting a NHW are as follows:

Call an expression of interest meeting in your area. It can be as small as 10 people, just to get things started. Explain what you foresee the NHW doing, and the time commitment required.

Establish your opening office bearers, these would be: Chairman, Vice-Chair, Secretary, Treasurer, Membership (possibly a patrol coordinator as well). These remain in these posts until your first formal community meeting where they step down and an election takes place to formally elect everyone into positions for the year ahead.

Write up your NHW constitution. If you don’t have a sample of one, ask your nearest NHW or call the Department of Community Safety in your area and ask for a copy.

Set a date for your first public meeting.

Send invites to everyone in the area you intend to cover, send them to schools for the kids to give to their parents. Hand them out at traffic lights in the area, go door to door – this is your big push to get people to attend and bring their friends. The more people at your inaugural meeting the better.

Invite a representative from local SAPS to attend the meeting to show their support for the project

At the meeting, explain what the NHW will do, which area it will cover and what will be expected of people participating. Be open to discussion around ideas and input.

At the meeting, call for a quick election to formalise the appointment of office bearers.

With the minutes of your inaugural meeting and your constitution in hand, you should be able to open a bank account with dual signatories for transparency. There’s always signage, printing costs, etc. that has to be paid for.

Finally, apply for accreditation for your NHW with the Department of Community Safety and local Police Station. (To become eligible for training, funding and support from the Department, you must be accredited).

Additional information about training and support can also be obtained at https://www.westerncape.gov.za/general-publication/neighbourhood-watch-nhw

“In order for us to be effective in overcoming crime, we’d all have to play a role. The patrols that I’ve been on thus far, are truly encouraging, as they continue to include NHW’s CPF’s, SAPS, Law Enforcement, along with private security firms and all other stakeholders. This shows that communities are determined to ensure that crime does not overcome us,” concluded Minister Allen.

Source: Government of South Africa