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Hefty fuel price increase will put the poor under even more pressure

The hefty increase in the price of petrol, diesel and paraffin is cause for concern.

The record high jumps in fuel prices are due to stronger international oil prices and a large deficit carried over from April, according to the AA, which also holds that the pressured international oil prices account for two-thirds of the price rise. 

Besides the ripple effect on the transport cost of consumer goods and on the cost of workers travelling to and from work, the increased price of paraffin will hit the poor who need heating in the cold winter months.

International oil prices and demand play a huge role in the local pegging down of the fuel prices. However, it is no secret the about half of the price we pay is constituted by local additions to the cost.

Since it is the poor who suffer most as a result of the price increases, maybe it is time government looked at how local fuel prices are calculated, and whether some the local additions’ income could be sourced from elsewhere.

The country’s poor need a hand-up, they need some more assistance from government to increase their cash flow to keep their heads above water.

           

For further enquiries or to set up a personal interview, contact Andre Venter at 083 251 3274.