EWN reports that government is still looking at its options even as the country faces a petrol price crisis, with an increase of around R3.80 a litre to take the price to about R25 a litre in June.
The fuel levy was decreased by R1.50 two months ago, but this was only for a limited period until the end of May. There have been mounting calls for the fuel levy to be scrapped as South Africans battle to make ends meet. But chief economist at Stanlib, Kevin Lings, said that it was not as simple as that as government could not just lose that revenue. But he added that government needed to do something to help South Africans, who are waiting to see how government will handle what many are calling the fuel price crisis. There are concerns that the fuel price increase will have devastating secondary effects. Economists agree that if fuel prices continue to increase drastically, then so will inflation, which will be followed by rate increases. Lings said that this could have serious knock-on effects as unions and workers then demand double-digit wage increases. "I suspect that as we go over the next couple of weeks or months, you are going to see more demands for salaries in double digits. Under current circumstances, that's difficult for many companies to afford and so what they'll do if they are forced to give higher wage increases, they'll start to look to cut costs elsewhere," he pointed out.
- Read the full original of the report in the above regard by Ray White at EWN
- Read too, Rising global fuel prices leave government little room to manoeuvre, at BusinessLive
- En ook, Steeds geen aankondiging oor nuwe brandstofprys, by Maroela Media
Get other news reports at the SA Labour News home page