Our economy’s downward spiral is exacerbated by high fuel prices. The economy is under severe strain and is still recovering from the Covid-19 pandemic. The war between Ukraine and Russia is making matters worse for South Africa as oil prices skyrocket. Our country’s annual inflation rate is also rising; CPI is currently at 5.9%, far exceeding the South African Reserve Bank’s expectations.
These price increases have a knock-on effect on the cost of living for many South Africans. The cost of basic necessities such as paraffin, bread, cooking oil and sugar will inevitably rise due to transportation and manufacturing costs. With the South African economy dependent on fuel, consumers are in for a tough time.
To make matters worse, Eskom’s inability to supply businesses with uninterrupted electricity supply, as well as the implementation of higher winter rates, has set us up for even more difficulties. Unfortunately, Interstate Bus Lines (IBL) and its passengers, who are the main drivers of the Mangaung’s economy, are subjected to these harsh economic realities.