LIMPOPO – Deputy Finance Minister David Masonto has called for investment in alternative energy sources to reduce South Africa’s dependence on petrol amid rising fuel prices, while urging government and businesses to support local mining operations to strengthen the economy.

Masonto was speaking during the Nhlaniki Day celebration held at Nhlaniki village on Friday, where he outlined the impact of international oil prices on the cost of living and highlighted the potential role of mining in improving the country’s economic position.

Rising fuel prices drive up cost of living

He said the high cost of petrol remained a concern for the government, particularly because of its impact on the transportation of goods and the prices consumers pay for food and other necessities.

One litre of petrol is R30, and as a government, that does not sit well with us.

“However, some of the factors affecting high prices are not local. The war that America wages with Iran plays a major role in that increase,” he said.

Masonto identified four factors contributing to rising fuel prices: South Africa’s dependence on imported oil, fluctuations in the rand-dollar exchange rate, fuel levies and transportation costs. He also highlighted the conflict involving the United States and Iran as a factor driving up international oil prices.

He said 64% of South Africa’s oil came from the Middle East, where conflict was disrupting international markets. A weaker rand increased import costs, while fuel levies and distribution expenses added to pump prices.

The government temporarily reduced the fuel levy from April to June to curb fuel and food price increases but later reinstated it because the relief measure was unsustainable.

Call for investment in alternative energy

Masonto called for long-term solutions to reduce dependence on petrol, including vehicles powered by solar energy, electricity and hydrogen. He urged businesses to support these initiatives.

Mining support could boost economic growth

On mining in Nhlaniki, he said the government was willing to work with traditional leaders to assist permit holders who lacked funding to establish and sustain operations. He highlighted mining’s contribution to government revenue through corporate tax, which helps fund social grants and other public needs.

Supporting permit holders, he said, was therefore important for economic growth.