Oil prices spiked in response to the Russia-Ukraine conflict.Just as security of fuel supply concerns come to the fore, the government has opted to sell off South Africa's strategic oil stocks to compensate for the revenue forfeited to provide a temporary drop in the fuel levy.
The sale of the strategic stocks to raise R6 billion provides the government with the financial breathing room to offer a R1.50 per litre drop in the fuel price until May - a widely welcomed reprieve as oil prices hit 14-year highs when it surpassed $120 a barrel last month as the implications of Russia's invasion of Ukraine set in.
It does, however, raise questions over the importance of strategic stocks and their role in security of fuel supply for the country, especially at a time when risks around global fuel supply are heightened.Subscribe to News24 for just R75 per month to read all our investigative and in-depth journalism. You can cancel any time.
Fin24 The reserves were reportedly gone during Minister Tina Joe at Peterson's term.
Fin24
TradingMzansi Fin24 Could've gotten oil at the cheap like India. Just saying, if the government's stance is to stand neutral might as well take advantage of cheaper rate getting oil from Russia that way it eases the plight of ordinary South Africans
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Fin24 They are called atretegic Reserves which can be deployed when they are needed. So we are not in war with anyone the citizens need some relief from this pressure
Fin24 May God continue to bless you Mrs LindaStouffes I never beblieve it's going to work out because I have lost a lot in different places I know one day they will face the judgment. I really appreciate LindaStouffes