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Minister in the Presidency Mondli Gungubele did not rule out the possibility of buying Russian oil if it were offered to South Africa at a rate that could lower fuel costs.
Asked whether government would consider purchasing oil from Russia at a discount available to other Brics countries, instead of the Organisation of the Petroleum Exporting Countries (OPEC), Gungubele said government would do what was necessary to find the “best offer” for SA.
“There is a general principle that we are moving away from fossil fuel. In the immediate term, this government will go tirelessly to ensure that we find the best possible offer for the country. I would not want to be specific about which international forum we stay in and go out of,” he said.
Gungubele, who was briefing reporters on Thursday morning on the outcomes of Cabinet’s meeting on Wednesday, said Cabinet had not specifically discussed plans to purchase oil from Russia.
However, Gungubele said Cabinet welcomed the National Treasury’s intervention on rising fuel prices by cutting the fuel levy by R1.50 a litre for April and May. The fuel levy was also extended from 1 June to 6 July 2022.
On Wednesday, Finance Minister Enoch Godongwana said the Department of Energy might consider selling more strategic oil reserves in order to fund the R4.5 billion cost of recently extending the fuel levy relief.
Russia is continuing its military campaign in Ukraine for a fourth month, despite escalating sanctions from the west. US president Joe Biden in March introduced a ban on Russian oil imports, in a bid to cut revenue to Moscow during the invasion.
In May, Russia announced plans to establish joint oil and gas refineries with other Brics nations – Brazil, India, China and South Africa – at favourable rates to member states. India is currently buying Russian oil, and China is reportedly doing the same discreetly.
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Consultation on scrap metal
Gungubele said Cabinet decided that the government would hold public consultations on the possible introduction of a ban on the sale of scrap metal to address the theft and vandalism of state infrastructure.
“Cabinet approved that public consultations be undertaken on proposals to restrict the trade of illegally obtained scrap and processed metals. The theft of scrap metal and copper cable from public infrastructure hinders the performance of the economy by imposing enormous costs,” said Gungubele.
Gungubele said while consultation and policy development continues, law enforcement and regulatory bodies will be entrusted with addressing practices that adversely impact state infrastructure.
“We are announcing a process with regard to dealing with illegality around the use of scrap metal in South Africa to deal with the negative impact it has on our economy. The process in that regard is there. Over and above that, the Competition Commission will always play its role when that is encountered,” Gungubele said.
The idea of banning the sale of scrap metal to stem its link to vandalism and theft has enjoyed the personal support of Minister of Public Enterprise Pravin Gordhan and Minister of Trade, Industry and Competition Ebrahim Patel.
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Both ministers called for a ban on the sale of scrap metals to be introduced in their respective budget votes in Parliament last month. The two ministers have also been jointly investigating the feasibility of such a ban.
According to state-owned companies, including Eskom, Transnet and the Passenger Rail Agency of South Africa, theft and vandalism of infrastructure are expected to cost them a combined R7 billion a year.
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