Fuel Price Increase Out Of Our Control, We Cannot Subsidize Like Other Countries: Govt

The government has said it cannot do anything about the increasing prices of fuel because it does not have the resources to subsidize like what happens in other countries. Speaking to The Standard Business, Energy and Power Development secretary Patson Mbiriri said,

It is an FOB (freight on board) issue. It is an international pricing issue. It has nothing to do with local conditions or factors, it is an FOB issue. The international price for fuel has been going up and this has been worsened by the recent decision to reinstate sanctions on Iran, so it has nothing to do with the local situation or factors. It is an international price adjustment issue as I have said.

South Africa has a fund from where they cushion consumers when there is an upward adjustment of prices. They have a national fund which they use whenever there is a price increase to cushion motorists against significant increases and it is the only (country) in the region (with such a facility).

More: The Standard

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