Petrol pump chaos dampens 99c fuel price relief

2nd August 2016 By: News24Wire

Petrol pump chaos dampens 99c fuel price relief

South Africans eager to pay just under R1 less for petrol on Wednesday might find they are unable to buy any petrol at all due to an industry-related strike.

The Department of Energy on Friday announced that petrol price for August would decline by 99c from Wednesday, meaning motorists will pay R12.35 a litre for unleaded petrol inland and R11.87 on the coast.

However, the relief in the petrol cost has come amid a petrol strike that is already affecting motorists in Pretoria, Johannesburg, Cape Town and the KwaZulu-Natal south coast.

Wage talks covering South Africa’s oil refineries and their distribution networks stalled last week as Ceppwawu, the largest of the three unions in the sector, called a strike on Thursday.

The strike is ongoing and there has been no notice of suspension, according to Zimisele Majamane, deputy chair of the National Petroleum Employers’ Association (NPEA), which bargains on behalf of the oil companies.

Majamane told Fin24 on Monday that some of its members confirmed that their employees are on strike.

“We unfortunately don’t have a planned date to engage with Ceppwawu as we speak,” he said. “We are open to talk at any time.

“We put an offer in our last meeting of 18 July to the union and we believe it is fair under the current circumstances, but have not had a response,” he said. “We are waiting for them.”

The standing offer from NPEA is a 7% increase this year and a consumer price index plus 1% increase next year.

This is lower than the previous two-year deal, which lapsed this year and which gave workers 8.5% and 1.5% on top of inflation in 2014 and 2015 respectively.

Ceppwawu, the union that called the strike, is pushing for a one-year agreement for 9%.