Retail giant Pick n Pay has expressed its concern about the regulation of fuel prices and called on the government to revisit “restrictive” pricing structures, as these were not beneficial to consumers.
Pick n Pay chairman Raymond Ackerman said consumers, already experiencing interest rate hikes and growing inflation, were facing the brunt of fuel price increases which were not “altogether necessary”.
Fuel prices are expected to reach R8 a litre this year, which would likely result in an increase in food and meat prices. From midnight, the price of petrol increased 17c a litre, diesel went up 7c and paraffin rose 2c.
Ackerman said a task team appointed by Finance Minister Trevor Manuel a year ago to look into the merits of imposing a tax on super profits earned by companies in the synthetic fuels industry, had recommended the easing of regulation in the fuel retail market. “Unfortunately, as before, nothing appears to have happened,” he said.
He said Pick n Pay's view on petrol and its burdensome, anti-consumer pricing structure was long held.
“Petrol remains the only commodity to enjoy state-controlled pricing today, with all other mandated prices and boards of control already done away with, which is entirely appropriate.”
Ackerman said Pick n Pay's stance on price fixing and monopolies was based on a fundamental belief in the free market and the benefits for consumers that accrue from vigorous competition.
“This is particularly the case in a developing economy, where growth is at the top of the agenda, particularly now. Simply put, price fixing is not good for the consumer.
“That's why we fought such bitter battles on cigarettes, bread, chickens and any other commodity where we felt collusion or price fixing was anti-consumer and anticompetitive.”
He said that when Pick n Pay took on the oil companies for the first time in 1975, it sparked the biggest row SA's fuel industry had ever known.
“At the time, we managed to get an agreement to cut the price of petrol. This was permitted for a period of time, until complaints from vested interests caused government to pass strenuous legislation to stop us,” he said.
Ackerman said the company continued to fight the regulation in the 1980s- 90s and had even held prices until the pumps were dry, after increases were announced.
He said any deregulation of a basic commodity was always great for consumers who bought fuel as regularly as groceries.
“And ultimately, what's good for consumers is good for SA.”
Source: Business Day
Article via I-Net-Bridge
