/ 17 May 1999

LIQUID FUEL RESTRUCTURING DUE

CABINET has asked the Mineral and Energy Affairs Department to finish up the restructuring of the liquid fuels industry by the end of 1999. While current regulatory mechanism will remain in place, all the investigations and consultations over new mechanisms should be completed by the end of the year. A key element of the restructuring is the lifting of price controls. This will open the door for retailers such as Pick ‘n Pay to discount petrol at the pumps. Filling stations will also be allowed to install self-service pumps, which could leave thousands of petrol pump attendants jobless. Strict control over the opening of new filling stations will be eased and the hold which oil companies have over petrol should relax. This will give black entrepreneurs the opportunity to gain entry easier they are expected to acquire an interest of about 25% in the industry.