5c petrol increase a band aid for a broken leg
4 September 2018
THE Cape Chamber of Commerce and Industry welcomes the decision not to increase the price of diesel and to reduce the petrol price increase to only 5 cents a litre but warns that this remedy may prove to be a band aid for a broken leg.
“The problem is that the rand has already weakened further to R15.22 to the US dollar and the price of Brent Crude oil increased to 78 US dollar per barrel,” said Ms Janine Myburgh, President of the Chamber.
“Both numbers are going in the wrong direction for us and it may not be possible to avoid shock increases in October.”
In addition, South Africa has slipped into a technical recession so a shrinking economy would make dealing with rising fuel prices even more difficult than it has been in recent months.