President Cyril Ramaphosa has moved to explain the recent fuel price hikes

President Cyril Ramaphosa has moved to explain the recent fuel price hikes

- President Cyril Ramaphosa has explained the reasons behind the recent fuel price hikes

- The president explained that South Africa was a net importer of oil and thus the victim of price fluctuations

- Ramaphosa also blamed the exchange rate for the dramatic rise in the cost of fuel

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President Cyril Ramaphosa as moved to explain the recent dramatic fuel price hikes experienced by the country. The president explained that South Africa was in the unfortunate position of being a net importer of crude oil which subjected the country to international price fluctuations.

Ramaphosa said these fluctuations were exacerbated by the current volatility in the exchange rate of the rand against the US dollar which was being caused by America’s trade wars with various countries.

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The president urged South Africans to remain calm and said the higher price of petrol and diesel would not necessarily raise the average living cost in South Africa. Ramaphosa called on retailers to refrain from increase the prices on food and basic consumer goods.

Briefly.co.za gathered that Ramaphosa made the address on Thursday in response to calls from within his own ANC party for the national government to take bold steps in addressing the high cost of fuel and its possible impact on the economy and millions of South Africans.

eNCA.com reported that economists warned that if the current market and economic conditions remain as they are consumers could be hit with yet another fuel price hike at the start of August. Petrol prices are at all-time record highs and in Gauteng went past R16 per litre.

On Friday, Ramaphosa announced that his administration would reveal a string of packages aimed at lessening the impact of the recent fuel price increases and VAT increase on the pocket of the average consumer.

Ramaphosa said he had tasked various ministers to come up with a draft relieve package. Ramaphosa hinted that this would include adding additional items to the VAT exemption list.

Meanwhile, thesouthafrican.com reported that Ramaphosa had engaged in negotiations with Ghana about a possible import-export deal which could lead to South Africa receiving a supply of cheaper oil.

The deal would involve South Africa becoming involved in new oil exploration opportunity.

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Source: Briefly.co.za

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