The Nelson Mandela Bay Business Chamber (NMBBC), said the closure of the fuel berth in Gqeberha/Port Elizabeth, has led to a fuel crisis in the Bay, pushing up the price of petrol.
Fuel is delivered to the East London Harbour and transported by road to the metro.
Denise van Huyssteen, Chief Executive, of the NMB Business Chamber, said Nelson Mandela Bay businesses and residents must not be penalised with higher fuel prices, to compensate fuel wholesalers.
Van Huyssteen said “while we accept that the LFWA’s members are in the untenable position of incurring additional costs that they cannot recover, it is blatantly unfair to transfer this burden onto the shoulders of the people and citizens of Nelson Mandela Bay.
The Eastern Cape economy is in recession and has amongst the highest unemployment rates in the country. The impact of an unnecessary and unfair increase in fuel prices is of grave concern, especially given the knock-on effect on food and transportation costs, as well as the costs of doing business in a metro where we need to be protecting investments and jobs.”
The Chamber wants the Minister of Minerals and Petroleum Resources, Gwede Mantashe, to approve an application by the Liquid Fuels Wholesalers Association (LFWA), to temporarily rezone the metro and surrounding areas as an “inland region” pertaining to fuel prices.
In a statement, the NMBBC said the anticipated petrol price decrease for October, could be reduced by as much as 30c/litre.
Van Huyssteen said the LFWA has advised the Chamber that extra costs incurred by the fuel wholesalers and transporters, cannot be recovered under the wholesale fuel pricing regulations, while indications from Transnet, are that the berth will not be in operation before January next year.
“Transnet must expedite the repairs with the necessary urgency and in the meantime the ministers of Transport and of Mineral Resources and Energy need to find a workable solution to address the cost concerns and the delivery of fuel to a city with two ports” said Van Huyssteen.