The South African economy and small business will not be able to survive the continuous hike in fuel prices, according to a report by Kevin Mileham, DA Shadow Minister of Mineral Resources.
Mileham claims the ANC sold the precious oil reserves for next-to-nothing in 2015 without purchasing any new stock to replace it, leaving the country in a serious predicament - without oil reserves to fall back on.
“The reality is that until three years ago government, to a certain extent, had resources to mitigate and protect South Africans from shocks in the global oil industry but ridiculously decided to sell off 10 million barrels of the country’s strategic fuel reserve well below cost or market price in 2015, in what was purported to be a “stock rotation,” the report stated.
Mileham voiced his concerns after the Minister of Mineral Resources and Energy, Gwede Mantashe, announced a fuel price increase starting Wednesday for 95 octane, diesel and liquid paraffin of 19, 25 and 24 cents per litre, respectively.
However, 93 octane petrol will see a slight drop of four cents per litre in price. The recent drone attacks on Saudi Arabian oil refineries are being touted as the main cause for the price hike, but Mileham fears the economy will only suffer more without a contingency plan in place.
“South Africa’s economy cannot afford these fuel hikes, and the continuous hikes will no doubt lead to pressure on small business and ultimately have serious consequences on job creation,” the report continued.
“To date, not a single person has been held accountable for selling off strategic fuel stocks. This while the cost of living is becoming unbearable for ordinary South Africans. As the fuel price is on the increase, so are food prices and transportation fees,” it concluded.
