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Department says work-from-home not policy as fuel hike nears

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Des Erasmus

The Department of Mineral and Petroleum Resources said that working from home was not an official response to impending fuel increases, after remarks by a fuel pricing official during a workshop were reported as policy.

The comments were made in response to “a question from the floor during a workshop on fuel pricing mechanisms”, said the department on Wednesday night.

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It said working from home was used only “as an example of one of several possible options” that individuals or organisations might consider to alleviate transport costs.

“It is therefore incorrect to report or interpret the response given during the workshop as an official position or policy proposal of the department or government,” the department said.

The response “was not presented as a directive, recommendation, or policy intervention, but rather as part of a broader discussion during the workshop,” it said.

Motorists are bracing for another fuel price increase in April, driven by higher global oil prices, a weaker rand, and tax changes announced in February’s national budget.

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In its latest monthly fuel price adjustment for March, the department said the average Brent crude oil price increased from $64.08 to $69.08 a barrel over the review period.

It said the increase was linked to “higher shipping rates” and “geopolitical uncertainty caused by the tension between the US and Iran, which could result in disruption of crude oil supply in the Strait of Hormuz”.  

The rand fell to a three-month low this month as soaring oil prices stoked fears of higher inflation and weaker growth in South Africa, a net importer of fuel.

The April increase will also be affected by levy changes taking effect on 1 April.

Treasury’s Budget Review says the carbon fuel levy will increase to 19 cents a litre for petrol and 23 cents for diesel. The combined increase in the general fuel levy, carbon fuel levy, and Road Accident Fund levy is aligned with expected inflation.

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