Picture: for illustration purposes
South Africa's economy echoes with tremors as the surge in petrol and diesel prices puts mounting pressure on households, businessmen, and motorists. As per the latest projections from the Central Energy Fund (CEF), the ensuing impact will be felt in various sectors, from fuel costs, food prices to likely spikes in inflation and repo rate.
Cosatu, the country's prominent union federation, warns the 75c petrol price hike, R1.60 increase in the cost of diesel, and R1.50 surcharge on paraffin endangers the welfare of working-class families and households wrestling to make ends meet. Matthew Parks, Cosatu's acting national spokesperson, addressed the threat of inflation revival and hinted at a possible repo rate escalation by the Reserve Bank in response to these financial rumbles.
Political analyst Arthur Shopola shares Parks' concern while underlining the government's notably passive role in the country's oil industry. Amid escalating food and transport prices, Shopola bemoans the missed opportunity to encourage the "work from home" culture during the pandemic.
Thokozile Madonko from the southern centre for inequality studies at Wits University points out that the petrol price surge also dampens the ambition of small enterprises and may propel unemployment rate growth. The Automobile Association of South Africa (AA) delivers a similar message, voicing concern over the government's lack of plan to mitigate the impact of the fuel price surge.