Eastern Cape’s Kariega and Kirkwood bear brunt of petrol price adjustments due to Port Elizabeth Harbour woes

2 Oct 2024

Kariega and Kirkwood are the two hardest-hit towns after Nelson Mandela Bay was rezoned by the Department of Mineral Resources and Energy to compensate for delivery costs because the fuel berth at the Port Elizabeth Harbour is out of commission.

While the rest of South Africa celebrated a drop in the petrol price of R1.14, Kirkwood in the Eastern Cape received only a R0.45 drop and Kariega (formerly Uitenhage) only a R0.50 drop. Both towns also only received a fraction of the price drop for liquid paraffin.

The petrol price adjustment has hit Kariega and Kirkwood the hardest due to the fuel berth at the Port Elizabeth Harbour being out of service.

A vessel under pilotage (being steered by a Transnet employee) crashed into the fuel berth during inclement weather in June 2024.

Pamela Yoyo, the Transnet National Ports Authority’s manager for Nelson Mandela Bay’s two ports, said previously that an investigation into the accident was concluded, but legal considerations barred them from commenting further.

Since June, the fuel berth has not been repaired, and Yoyo said these repairs will likely take until the end of November. She said they were hoping to recommission the fuel berth in December.

This means that fuel must be collected in East London 280kms away. As a result, the Liquid Fuel Wholesalers’ Association of SA applied for a price increase for Gqeberha, arguing that it couldn’t afford the transport costs.

Yesterday, in written answers to questions, Raphi Maake from the Department of Mineral Resources and Energy, said they allowed the petrol price adjustments to ensure fuel security in the metro.

Read more: ‘It was either that or no petrol’ – department explains Nelson Mandela Bay’s petrol price woes

Gqeberha residents also missed out on the full drop in the petrol price and received an R0.83 reduction rather than R1.14.

Consumers ‘unfairly affected’

The CEO of the Nelson Mandela Bay Business Chamber, Denise van Huyssteen, said they are still reviewing all the available information to see how they can oppose this decision, which could have far-reaching implications for the metro.

Both businesses and households in the region are under extreme pressure. The economy in the Eastern Cape is in recession and unemployment is well over 40%.

Van Huyssteen said they were extremely concerned also because of the impact that the price adjustments had on the price of liquid paraffin.

“This results in the area being unfairly subjected to new pricing tariffs where consumers and businesses will pay more for their fuel than what they should normally have been subjected to as part of a coastal region.

“The accountability for the additional costs incurred for trucking fuel into the area after a berth at the Port Elizabeth Port was damaged in June, is unfairly being passed on to consumers and businesses in the Nelson Mandela Bay area.

“This unilateral and unjust decision does not take into account the fact that Nelson Mandela Bay is in recession and has among the highest unemployment rates in the country. Equally worrying, the accountability for the issue has simply been transferred to consumers and businesses who are already reeling from the consequences of the recent massive electricity price increases and other factors affecting the cost of living and the costs associated with operating businesses,” said Van Huyssteen.

Read more: Nelson Mandela Bay Business Chamber calls for Mantashe to reject petrol price rezoning proposal

“While we understand that this pricing structure is of a temporary nature, and that once the berth is fixed the area will return back to its former allotted zone, this decision will still have a permanent effect and may potentially impact upon future fuel pricing adjustments.

“We are currently reviewing the matter and once we have a full understanding of the implications, we will consider the various options to determine our next steps in opposing this harsh and unfair decision,” she said.

Transport Minister Barbara Creecy, who was given oversight of Transnet earlier this year, will visit Nelson Mandela Bay on Thursday, including the Port of Ngqura, which does not have a facility for tankers to deliver fuel. DM

Categories:

Tags:

DM is much better if you are signed in...

Business Maverick

Consumers ‘unfairly affected’