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The 6.5% inflation rate for May that was announced today confirms that the disastrous policies of the ANC have resulted in new levels of hardship for the people of the Western Cape. This is above the Reserve Bank’s upper target band, and the first time the inflation rate has breached 6% since March 2017. Much of this inflation is driven by high price of fuel.

The Western Cape has an expanded unemployment rate of 29%, meaning excessively high food prices hold a very real risk of starvation for a significant proportion of our most vulnerable citizens. The fuel price also filters through the Western Cape agriculture sector, having an effect on both production and transport costs relating to food. The most direct and effective step National Government can take is to lower the fuel price. Regardless of the external factors that have influenced this crisis, the time for National Government to respond is now.

MPP Gillion Bosman says: “The cost-of-living is rapidly getting out of control. National Government must provide some relief for the people of the Western Cape by slashing the fuel price now. The overtaxed fuel price is driving costs throughout the economy, as almost all of our consumer goods are transported by road, given the collapse of our rail system. The steps to lower the fuel price suggested by the DA, including deregulation and slashing taxes on fuel, need to be implemented if we are to avoid even worse hardship and social unrest.”

Issued by Gillion Bosman, MPP - DA Western Cape Spokesperson on Finance, Economic Opportunities and Tourism