Fuel price increase will without a doubt lead to increases in transport and food prices. Photo: Motshwari Mofokeng/African News Agency(ANA)

RUSTENBURG – The latest petrol increase by over a rand will have a devastating impact on small businesses over a period of time, the National African Federated Chamber of Commerce and Industry (Nafcoc) in North West said on Friday.

"This increase will without a doubt lead to increases in transport and food prices," spokesperson Tshepang Ramosepele said.

"This week's petrol hike will further strain small business as more people spend less or cut spending on products and services offered by small businesses. Some businesses might even close as has happened due to load-shading. This vicious cycle will continue as company profits drop which affects tax venue." 

He said petrol has increased by almost R4 since January which constitutes about a 12 percent increase.

"This is against the background that the country’s economy is expected to grow by a measly 1.4 percent. We believe that the increase in [value added tax] VAT, electricity and petrol will have severe implications on small business and the community in general," he said.

"Economic growth and job creation will also stagnate, unemployment will rise and it is the small business, poor and rural communities that will suffer most. We call on government to consider the implications of such decisions as this hampers the desired better life for all."

Petrol 93 Octane increased by R1.34 per litre and 95 Octane by R1.31 this week.

African News Agency (ANA)