Petrol price deregulation - be aware of the pitfalls

The energy department's recent announcement that it plans to deregulate the fuel price by imposing a price cap on 93 octane petrol could have a major unintended consequence. If the price of fuel exceeds the market cap, there is no incentive to import or produce product at a loss. In extreme situations this could lead to pumps running dry. In a broad-ranging interview, BizNews spoke to Justus van der Spuy and Enrico Ganter, executive directors at Capital Energy Resources, about market forces driving high oil prices, and what the state of South Africa's strategic petroleum reserve is. They also shed light on where Russia's crude is going as Europe looks to ween itself off that country's oil and gas in the wake of their invasion of Ukraine. Learn more about your ad choices. Visit megaphone.fm/adchoices