At the moment we are all very aware of what is happening in our country and the affects it has brought on the fuel price. The unrest driven by former President Jacob Zuma’s following have brought cities to their knees. With our country barely breathing as it is due to the Covid Pandemic, these current riots are just adding to the pile.
Barely hours after President Ramaphosa appealed for calm Monday nights, the people were out in droves, vandalising and destroying businesses in various areas.
The death toll is on the rise now with already 10 deaths confirmed in JHB and the police have their hands full in trying to get a handle on this widespread looting across Kwazulu Natal and Gauteng.
At the moment things are still rampant, but how does it now change South Africa’s outlook for the future. All industries are feeling the severe blow of Covid and are working hard to keep head above water and the looming long term affects of it all has placed a heavy burden on our SA community.
The cost of petrol in South Africa is more expensive than ever before – but so are the taxes, which imposes a fee for every litre of fuel sold
As a result, only 35% of prices paid at the pump relate to the actual cost of
imported petrol. This decrease in BFP was, however, counteracted by increased taxes.
South Africa is already facing a fuel crisis as the low oil prices have made it difficult to import fuel from other countries. As we all are aware, this also pose a threat to our nation’s economy as the price of petroleum products remains high.
Consequences of a Potential Fuel Crisis for Your Business
A fuel crisis can lead to a lot of economic and social impacts. It is essential for your business to have a plan in case the crisis escalates.
Economic impacts: Rising costs of transportation, capital, and production will make it difficult for businesses to keep up with the pace of global trade.
Social impacts: Gas lines and increased food prices will lead to social unrest, which can be dangerous for everyone as we can see with the current events of the unrest in KZN and Gauteng. This may cause panic buying or hoarding or looting which have already resulted in empty shelves and substantial repair work at stores.
In conclusion it would be wise to be vigilant and to take note of what is happening in our country. Take note of the affects and start thinking out of the box. The old way of doing things has to change or get a brand new jacket.
Nothing is the same anymore and while things are looking bleak at the moment, opportunities are still on the rise, however, business has to take on a brand new outlook and be equipped to function to full capacity during these trying times.