Local business network describes rising fuel prices as a blight on struggling local economy

Local business network Northrand Chamber of Commerce and Industry described the recent fuel price hike as the final nail in the coffin of a struggling economy.
This is after the Ministry of Mineral Resources and Energy announced that a liter of 93 octane will increase to R2.43, 95 Octane to R2.33 and diesel R1.10 from June 1.

The president of the local business network, Richard Ntjana, said the increase in fuel prices would have a negative impact on struggling small businesses and the poorest of the poor.

He said the recent rise in prices of staples such as cooking oil had already had a negative impact on low-income households.

“Rising fuel prices will have a very devastating impact on consumers and small businesses who are already overwhelmed by a struggling economy. When fuel prices rise, transportation costs also rise and people will have to pay more to get to work. »

He said many small businesses that survived recent lockdown restrictions due to the Covid-19 pandemic would not escape this time.

“We are in big trouble because our economy shows no signs of growing. We are not creating more jobs than we are supposed to and I do not see employers making wage adjustments due to the recent struggles with Covid-19.

“The production of goods requires oil and fuel, the production of electricity used in households and the mining industry also consumes oil and fuels. We need some kind of government intervention to deal with the latest developments.

Ntjana hopes that the international community will soon find an amicable solution to the war between Russia and Ukraine which is believed to be the cause of rising fuel prices.

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