Inflation: Deregulate the petrol price immediately – Solidarity

Citizens should be allowed to spend their salaries on themselves rather than let money end up in pockets of state

Solidarity on inflation: Deregulate the petrol price immediately

20 October 2021

Solidarity is once again calling on the government to keep its fingers out of the economy and to allow citizens to spend their salaries on themselves, rather than letting the money end up in the pockets of the state. The first step in this direction will be to lower the fuel levy and to deregulate the petrol price.

Solidarity expressed this opinion following the announcement of September’s headline inflation rate. The inflation rate of 5% is once again much higher than what consumers have become accustomed to over the past few years. With a rate of 7%, food price inflation is also higher than general inflation. Electricity and other household fuels have risen by a staggering 14% in the past year. The worst is vehicle fuel inflation, which has risen 19,9% in the past year. On top of that, further huge increases in the fuel price have been announced for next month.

“That is exactly why we are calling on the government to relinquish its grip on fuel prices. It is crucial that the tax on fuel should be reduced immediately and that the price of petrol should also be deregulated, as in the case of the diesel price. Competition in the petrol market will benefit everyone.

“Fuel price inflation seeps through to almost every other product in the inflation basket, and therefore it should be the very first place where the government can make a difference. As with almost all government interventions, its efforts to regulate the industry are to the detriment of everyone in South Africa.”

Issued by Theuns du Buisson, Economic researcher, Solidarity, 20 October 2021