BOKAMOSO
Not every part of the fuel price is beyond government’s control
Wednesday’s massive 99c fuel price increase – the biggest ever in the history of our country – will have calamitous implications for millions of economically distressed South Africans. We’ve become so accustomed to this news that it is easy for us to miss the true scale of these implications. For many it will seem like just another petrol price hike, followed by some more hand-wringing from government, more calls for South Africans to “tighten the belt” and then we must simply get on with life until the next wave hits us.
But the truth is, there is no more belt left to tighten for many families. And not only families – small businesses too. We often hear how poor families spend a disproportionate part of their household income – up to a fifth of it – on transport. Well, the same goes for many small enterprises. And when this input cost rises beyond a certain point, telling them to tighten the belt is not a helpful piece of advice. Often, all they can do is shut their doors and cut their losses, leaving their own families as well as those of their employees with no income at all.
While it claims to commiserate with struggling South Africans, our government could not possibly be more out of touch with the real-life challenges of our people. In a series of tweets following the fuel price hike, the government’s first piece of advice was to “consider replacing your vehicle with a more modern, high technology, fuel efficient product”. As many people pointed out to them, this was Mary Antoinette’s “let them eat cake” all over again.
But government’s biggest mistake is not its ill-considered petrol saving advice on Twitter. Its most glaring shortcoming is its unwillingness to take any responsibility for this situation, choosing instead to blame “outside forces” for a string of increases that has seen the inland price for 95 octane petrol climb from R13-76 in March this year to R17-08 on Wednesday. If you take a step back and look at our petrol price over the past decade, you get a true sense of just how badly poor South Africans have been affected. The same litre of petrol that now costs R17-08 would have set you back R7-01 in 2007.