The Democratic Alliance has announced plans to introduce a new private members bill to parliament that will de-regulate the fuel sector.

The opposition party said the focus of the bill will be to amend the existing Petroleum Products Act – specifically provisions in section 2 of the legislation which deals with the regulation of the fuel sector by the minister of energy.

“The DA will also ensure that the Competition Commission will keep a close eye on the market and to ensure that price gouging does not occur, particularly in rural and small towns where competition may not be fully developed. This will ensure that in regions where competition may be low, fuel prices may not exceed an unreasonably high level,” said the party’s Kevin Mileham.

“When the industry is de-regulated, competition among wholesalers and retailers will be increased. This should result in lower pricing at the pump as retailers will be allowed to compete on price to attract customers, which would be a great relief for South African motorists.”

The DA said that the bill will be published for public comment shortly, with the public asked for their inputs and suggestions on the draft law. “We know that South Africans are paying significantly more for fuel than they should,” said Mileham.

The DA’s proposal to deregulate petrol prices in South Africa comes after fuel prices further increased to record levels at the start of June. This is despite interventions by the government at the end of May to extend relief for motorists.

On Tuesday (31 June), the National Treasury and the Department of Mineral Resources and Energy announced that the general fuel levy reduction of R1.50/litre would be continued for another month. The reduction would then be halved to R0.75/litre in July, with the relief ending in August.

The government was under huge pressure to extend the levy reduction – without it, the petrol price would have increased by close to R4/litre last week.

Despite this, the government is set to face continued social and political pressure to shield consumers from the cost-of-living surge and will be unable to give in to all demands going forward. In an open letter published on Monday (6 June), president Cyril Ramaphosa warned government cannot afford to keep extending these fuel price interventions.