Fuel price increase a big concern for Northrand Chamber of Commerce
The chairperson of the local business network said South Africans was already feeling the bite of fuel price increases.
The Northrand Chamber of Commerce and Industry has described the recent petrol price increase and power outages as the last nail in the coffin of the South African economy.
The Department of Mineral Resources and Energy had announced a massive price increase on petrol, diesel and paraffin with effect from July 6.
Chairperson of the local business network Richard Ntjana said the fuel price increase will have a direct negative impact on the poor and working class. “An increase in fuel prices means higher costs for companies to manufacture and distribute their products. Consumers of different goods and services will see another price hike on basic things like, maize meal, cooking oil and others. Commuters will have to brace themselves for another increase in bus and taxi fares.”
He alluded to the ongoing war between Russia and Ukraine as the principal factor in the record increase in fuel.
“We are surely not going to win the war on poverty, high unemployment and inequality any time soon. Our country is in deep trouble with slow economic growth that reflects the direct effect of higher living costs with prices on consumer price inflation that will keep going up.”
He added that the recent power woes that forced Eskom to introduce Stage 6 load-shedding have made things worse for the ailing economy. “We will feel the impact of this unfortunate situation for a very long time.”
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