“It will clearly be unsustainable to keep capping the fuel price as things stands rights now. We could be looking for an increase of R1.20 per litre next month because of the depreciation of the rand and the rise in international crude oil prices. Thirty cents in a litre was relative a drop in an ocean compared to what could be the case next month,” says economist Azar Jammine. The fuel price rises by about five cents per litre Wednesday.
Dennis Bloem, National Spokesperson, COPE
4 September 2018
Congress of the People (COPE) is totally surprised that the government still believes it can continue to juggle the ever increasing number of heavily loaded balls in the air.
Its latest decision to absorb the cost arising from the under recovery in the current fuel price is full of bravado signifying nothing.
The facts are that the Rand is slipping under multiple pressures. At present it is trading above R15 to the dollar.
With what is happening in Argentina and Turkey combined with the many policy uncertainties at home, the situation of the Rand is uncertain.
With the landed cost of fuels rising, the time is close, according to the AA, for the cost of 93 unleaded octane fuel to rise to R16 a litre inland for the first time.
The upward movement of oil prices internationally leaves South Africa little room for comfort.
Congress of the People (COPE) understands that the chickens are coming home to roost for the ANC government.
State finances are in a mess after eight years of massive looting of state resources, the shenanigans at SARS and the sheer scale of the size of the South African government.
The binging by the Departments, Public Works in particular, adds to the predicament of the state.
Where is the government going to get the money from to cover for the shortfall?
Already, capital expenditure on infrastructure is down.
Every move that the government is making is leading to a worse and worse economic situation. There is no central authority and no clarity of vision.
The government is juggling with South Africa’s future. The effort by the government to absorb the shortfall is pulling wool over our eyes.