ANC: Trump sanctions on oil producing countries hurting emerging markets

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The African National Congress (ANC) has called on the South African government to look at ways to increase the country’s petrol reserves, freeze or even decrease the controversial fuel levy and stabilise the finances of the Road Accident Fund, PetroSA and the Central Energy Fund.

The governing party said that while global factors have significantly influenced the fuel price hikes, the onus was ultimately on the South African government to mitigate the impact on its citizens. The ANC said Cyril Ramaphosa’s government needed to be proactive on this issue.

“We believe there is more that could be done to reignite and accelerate economic growth, and to soften or lessen the effect petrol price increases have on our people and on the economy,” said national spokesperson Pule Mabe on Wednesday night.

“We must do more to address structural problems facing our economy, increase foreign exports and investor confidence. The ANC-led government must mitigate the short and long term effects the fuel price hikes have on South Africans and our economy,” added Mabe.

Be that as it may, the ANC said South Africans could not ignore the trade wars that have been initiated and fuelled by the Donald Trump administration, which it feels has contributed significantly to the rise in the price of fuel.

“The rand depreciation is beyond our control and is fuelled largely by US trade wars, selling-of assets in emerging markets, portfolio outflows. The fuel price increase is inevitable due to global crude oil prices increases,” explained Mabe.

“We however call on the US to consider the unintended consequences of its trade war and the ripple effects its imposition of sanctions on some oil producing countries have on the emerging economies. We also join the call on the Organization of Petroleum Exporting Countries (OPEC) to help lower fuel prices by increasing oil production.”

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