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NMB Chamber baulks at 'unilateral' tariff adjustments

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The Nelson Mandela Bay Business Chamber said it was considering its options after raising concern that revised transport tariffs were implemented into the price structures for fuel in Nelson Mandela Bay from Wednesday.

The tariff adjustments were announced on Monday by the Department of Mineral and Petroleum Resources, following an application by industry players for the region to be exempt from fuel decreases after a fuel bunker used to transfer product was damaged by a ship in June.

Suppliers now have to collect their product in East London at additional cost as the bunker is slated to be completely fixed only early in the new year.

NMB Chamber CEO, Denise van Huysteen, said the "unilateral" decision has resulted in the area being unfairly subjected to new pricing tariffs, and consumers and businesses will pay more for their fuel than what they should normally have been subjected to as part of a coastal region.

"In practical terms on the price of 95 unleaded fuel, this means that consumers in the Bay received an 83 cents reduction instead of 114 cents, while those in Kariega were penalised even more with a 50 cents reduction and the Kirkwood area with a 45 cents reduction.

"In terms of diesel, the Bay received a 73 cents reduction, Kariega a 50 cents reduction and the Kirkwood area got a 45 cents reduction," Van Huyssteen said.

She also noted that concerning LPG gas, the Metro received a 250 cents increase, Kariega received a 162 cents increase, and Kirkwood a 149 cents increase.

Van Huysteen said that equally worrying, is that the accountability for the issue has simply been transferred to consumers and businesses.

"While we understand that this pricing structure is temporary and that once the berth is fixed the area will return to its former allotted zone, this decision will still have a permanent effect and may potentially impact upon future fuel pricing adjustments.

"We are currently reviewing the matter and once we have a full understanding of the implications, we will consider the various options to determine our next steps in opposing this harsh and unfair decision," she said.

Also Read: Gov approves interim adjustments for NMB fuel price structure