Cape Town - The logistics and consumer sector have responded with great concern to the rising costs of living. The country has been battered by recent hikes in fuel, interests rates, and the proposed 20.5% electricity hikes, which has been widely rejected.
With the recent fuel price hikes, the freight and logistics industry has called on the government to shield the sector from future increases through a fuel levy tax rebate for companies that employ a certain number of people.
The sector, which contributes an estimated R480billion to the economy (approx.10-12% of the GDP), took a knock with the recent fuel increases this week, which saw the price of petrol increase by 53 cents a litre, and diesel by 80 c/l.
Denesh Singh, chief financial officer of the KwaZulu-Natal based trucking company, BigFoot Trucking has also called for the government to intervene in what he has described as the “spiralling” cost of fuel. He says the fuel hikes will have an extremely negative impact on economic growth and potential job losses.
“The freight and logistics sector is what drives the economy, and when these constant fuel increases hit this sector, it filters down to every aspect of the economy. In the end, the rising cost of fuel is passed on to the consumer who ultimately pays more for their goods and services and has less money to save,” he added.
Singh also pointed out that the fuel price increased in nine of the 12 months of last year.
“Any impact to this industry which is an essential cog in the economy, will have an impact on those sitting in the boardrooms to the grandmother tilling her field in a rural area. It is too big and too important for us to sit back and let fail,” Singh said.
Consumer specialist, Ina Wilken, says government should re-look at their treatment of consumers in the past 20 years.
“They need to stop the taxation of people, and that we have been asking for many years. The hikes are a very easy way for the government to fill their pockets,” Wilken said.
“The majority of South African consumers are in a very bad position right now. The fuel prices increasing, will affect consumer’s day-to-day transportation and most importantly the food prices will increase,” she said
“For Eskom to ask for a 20.5% electricity hike is beyond ridiculous. No consumer can afford that. It shocks the consumers. Immediately the food prices will increase even drastically if the hikes are approved,” she added.
Wilken also expressed serious concerns with the new interest rates hikes, saying that they will drastically affect consumers’ already “sky-high” daily expenses.
IOL