Hike is fuelling fires of poverty

Motorists should fill up their tanks before midnight tonight as beleaguered consumers are again forced to find ways to cut back on spending and manage their debt as the cost of living increases. The impact of the latest fuel price hike is severe and will hit all South Africans hard.

People are already feeling the pinch and the latest fuel price hike will have a major impact on food prices and increase the cost of living for so many people who are already battling to make ends meet.

Energy Minister Jeff Radebe announced the price for 93 and 95 octane petrol will increase by 26 and 23 cents per litre, respectively, while the price of diesel will increase by up to 26 cents per litre.

The wholesale price of paraffin also increases by 22 cents a litre, and the retail price by 30 cents a litre.

Radebe said the rand-dollar exchange rate was a contributory factor.

“This will gobble into people’s disposable income, resulting in less money for savings and investment,” said Free Market Foundation director Jason Urbach.

“The impact on the country’s economy will also be wider, because there will be a decline in employees’ productivity level. It is a vicious cycle.

“If government is concerned about the impact on consumers, the majority of whom are poor, it should reduce the tax on a litre of petrol.”

Urbach is correct. While many factors are out of South Africans’ hands, alternative solutions from government to constant fuel hikes need to be found, and be found quickly.

People are battling to keep heads above water and the latest fuel price hike will just make it so much more difficult to survive.

Tough times lie ahead.