The ANC has now joined the IFP in calling on government to cap the ever increasing fuel prices by increasing petrol reserves.
The party also wants to see the financial stability of the Road Accident Fund, PetroSA and the Central Energy Fund.
Economist Dr Iraj Abidian says there isn't much that government can do because the economy is not performing as well as it should.
ANC CALLS FOR MANAGING OF FUEL INCREASES IMPACT ON SOUTH AFRICANS AND THE ECONOMY pic.twitter.com/da2shHxAgL— African National Congress (@MYANC) July 4, 2018
Government finances are not in a shape to be able to, in a short term and I mean in the next two to three years, of structure in order to stabilise or at least minimise the volatility in the price of petrol.— Iraj Abidian, Executive Chairman at Pan-African Capital Holdings
Someone has to pay for it, if the consumers don't pay for it, government has to somehow subsidise, that is the sense of it.— Iraj Abidian, Executive Chairman at Pan-African Capital Holdings
If government finances were robust and the economy was performing then government would be in a position to put a fuel price stabilisation.— Iraj Abidian, Executive Chairman at Pan-African Capital Holdings
Dr Abidian accuses the ANC of political posturing and says looking at the facts there is very little that the government can do.
It is not that they don't want to do it but they cannot afford to. Whatever mechanisms you want to think of requires the ability of a government that is financially capable of doing something and at the moment the reality is government finances are not in such situation.— Iraj Abidian, Executive Chairman at Pan-African Capital Holdings
To hear the rest of the interview with Dr Iraj Abidian on the fuel hikes, listen below: