South Africa’s government has extended its general fuel price levy intervention until the beginning of August, but the relief measure hasn’t prevented large increases which will impact consumers as well as small businesses, who are the growth engines and job creators of our country. According to the Department of Mineral Resources and Energy, the price of different grades of petrol (93 and 95 unleaded) will rise by R2.43 a litre and R2.33 a litre, respectively and all grades of diesel will increase by between R1.07 and R1.10 a litre.

Zane van Rooyen, Product Marketing Manager at field sales management CRM and mobile ordering app, Skynamo, says that when it comes to small businesses that operate in the manufacturing, wholesale or distribution sector, all supply chain goods need to be transported from source to destination. “The increases can have major repercussions for these companies’ overheads and ultimately bottom lines. The impact on consumer spending will also have a knock-on effect on many other small businesses in the country.”

It has also been reported that the massive fuel price increase will see the price of a basic food basket rocket to R4609, an increase of R462 in the past six months which will have an impact on the Food and Beverage industry. “The produce for the sustainability of life simply has to continue, so businesses in this industry will have to adjust their prices accordingly in order to fulfil the need. As such, the demand for non-essentials will most definitely be placed under strain as the cost of fuel begins to bite and household budgets downsize as a consequence,” he adds.

With his in mind, van Rooyen says that it is vital that the Government does everything possible to protect our local small businesses as these are the growth engines of our economy.

Submitted by Hook, Line & Sinker Communications