Premier Alan Winde says he has written to the Presidency and the office of the Minister of Mineral and Petroleum Resources to raise concerns about what appears to be the increased hoarding of fuel stock by some suppliers.
This as reports filter through of some filling stations running dry, and farmers not getting access to adequate diesel stocks.
According to a survey conducted by AgriSA and Agbiz, respondents in several rural regions reported constrained supply, with some fuel retailers introducing rationing measures and limiting volumes due to uncertainty over replenishment.
The agricultural bodies say these developments are already beginning to affect normal farming and agribusiness activities at a critical stage in the production cycle.
AgriSA and Agbiz has called on government to immediately adjust the fuel prices, to create certainty and prevent panic buying and hoarding.
Winde has reiterated that the practice of hoarding fuel by suppliers is unethical.
“I implore suppliers to continue providing fuel for their clients. Withholding supply places the economy and livelihoods, especially in the province’s agriculture sector, which accounts for over 50% of the entire country’s exports, at great risk. I have written to the President and Minister requesting their urgent intervention to ensure stability and prevent avoidable disruptions to primary sectors of our economy.”
Winde says the Competition Commission of South Africa has also indicated that price gouging is illegal. There are isolated reports of fuel retailers hiking prices in advance.
He says any provider increasing prices in advance of any actual fuel cost hike or increasing prices far more than their actual cost risks being prosecuted and found guilty of price gouging. Complaints should be submitted to ccsa@compcom.co.za.
Residents are also asked to submit reports on fuel shortages to the Department of Mineral and Petroleum Resources at fuel.complaints@dmpr.gov.za.
Winde says the Provincial Disaster Management Centre (PDMC) is monitoring the situation, along with the Fuel Industry Association of South Africa (FIASA) and other key stakeholders.
FIASA has reassured the country that there is currently sufficient fuel available nationally to meet demand.
Therefore, Winde concluded, any end-user fuel shortages are very likely the result of market manipulation.
“Provinces have no mandate over fuel supply matters. It is, therefore, critical that the national government steps in and takes decisive action against unscrupulous suppliers. Their actions can have the potential of derailing the entire country’s economic recovery.”
