Local business network describe fuel price increase as a plague to struggling local economy
The chairperson of the local business network said the fuel price hike will contribute to the high rate of unemployment.
Local business network Northrand Chamber of Commerce and Industry described the recent fuel price increase as the last nail in the coffin of a struggling economy.
This is after the Department of Mineral Resources and Energy announced that a litre of 93 Octane would go up by R2.43, 95 Octane by R2.33 and diesel R1.10 from June 1.
Chairperson of the local business network Richard Ntjana said the fuel price increase would have a negative impact on struggling small businesses and the poorest of the poor.
He said the recent price hike on basic items such as cooking oil had already had a negative impact on households with low incomes.
“Th fuel price increase will have a very devastating impact on the consumers and small businesses that are already overstretched with an economy that is ailing. When fuel prices go up, transport costs also go up and people will have to pay more to go to work.”
He said many small businesses that survived the recent lockdown restrictions because of the Covid-19 pandemic would not escape this time.
“We are in very deep trouble as our economy doesn’t show any signs of growth. We are not creating more jobs as we are supposed to and I don’t see employers making some salary adjustments because of the recent Covid-19 struggles.
“Production of goods requires oil and fuel, generation of electricity used in households and mining industry consumes oil and fuels too. We need some kind of intervention from the government in order to cope with the latest developments.”
Ntjana hoped that the international community would soon find an amicable solution to the war between Russia and Ukraine which was said to be the reason of fuel price increases.
Related Article:
Whatever the fuel price, reducing fuel consumption is imperative
