Small businesses are particularly exposed to high fuel prices because fuel costs affect transport, deliveries, commuting, supplier pricing and broader inflation across the economy.
South Africa’s record petrol price is adding fresh pressure to already strained small businesses, raising concerns about operating costs, cash flow and employment.
According to a statement issued by Simply Financial Services, two consecutive fuel price increases of a cumulative 32% have pushed inland 95 unleaded petrol to R26.52 per litre, and among the steepest consecutive increases in 50 years.
According to Simply Financial Services chief executive Anthony Miller, the increases were forcing businesses to reassess costs and financial risks, and one solution was to consider group risk cover.
However, the broader issue is the vulnerability of South Africa’s small, medium and micro enterprise sector to not having staff who are able to contribute to the businesses’ growth. “For employers taking stock of their costs and commitments, ensuring staff cover is in place is one of the most effective ways to manage risk in the current climate,” Miller said.
