Local businesses feel the pinch of sky-rocketing fuel costs

With the ever-increasing petrol price, businesses are forced to adjust and work around the difficult circumstances.

Due to the ongoing war between Russia and Ukraine, the increase in price of oil and the rand being weaker than the US dollar, predictions are that the price petrol may increase by as much as R1.75 in July. In a statement released, Organisation Undoing Tax Abuse called for an extension of South Africa’s R1.50 petrol tax relief to alleviate the effects of another expected fuel increase. However, even if the relief is granted, many businesses still see red during this stressful time.

Polokwane Observer spoke to Jonas Ngake, who owns a tourism and transport business called Merwalo Tourism & Associates, to understand how his business was affected by the increase of the petrol price. Ngake said he feels the pinch as there is a lower demand for his services. People cannot afford to travel and as a result, he has gone back to the drawing board.

“We sell local packages, which are more affordable than to go to another province for a holiday. We also implemented a rewards programme for our clients whereby they get cashback when they travel with us, which gives them more travel opportunities,” he added.

Another local business owner, Josephine Kagori, who owns Share Joy Preschool, said her business was also negatively affected by the increased petrol price. She explained parents need to find ways to save their money and services like aftercare is not high on the list of priorities. Kagori said some of the ways she keeps her expenses low is by shopping only once a week.

“I make sure to buy everything I will need at once to avoid unnecessary travel expenses,” she said. Street vendor Thanyani Sigella said the increase in petrol prices made it difficult for his business to operate. As a result, he had to adjust his prices, which was not well-received by some of his clients.