MegaBanner-Right

MegaBanner-Left

LeaderBoad-Right

LeaderBoard-Left

Home » Featured IND » SMEs remain under pressure as fuel prices increase

SMEs remain under pressure as fuel prices increase

Small and medium-sized businesses (SMEs) are often hit the hardest during the periods of fuel price increases. This comes at a crucial time as SMEs are still trying to recover from the financial impact of Covid-19, coupled with lower economic growth.

As a result, the expected increase in the prices of diesel and petrol by about 66 and 57 cents per litre respectively, will have a negative impact on SMEs. This will be further exacerbated by the expected price increases in the general fuel levy and Road Accident Fund levy, coming into effect in April.

Therefore, it is essential for SMEs to make key decisions in order to sustain their business models as fuel costs impact their distribution costs, supply, overhead expenses, pricing of their products and services. Given that consumers are also having difficulty making ends meet these costs may need to be absorbed as they can’t be passed onto to their clients.

Businesses need to view these increases alongside the importance of cash flow management, actively manage how they can contain costs and seek opportunities to be resilient in response to the tough economic conditions.

To enquire about Cape Business News' digital marketing options please contact sales@cbn.co.za

Related articles

Turning spaces into opportunity: City backs place-making for a more beautiful Bellville and economic growth

The revitalisation of Bellville is gathering pace, taking the form this week of the opening of the Sanlam Urban Garden on the corner of...

Invest Cape Town hosts inaugural business breakfast to drive economic dialogue and collaboration

The City of Cape Town’s Invest Cape Town team, in collaboration with the Economic Analysis unit, successfully hosted the first-ever Invest Cape Town Business...

MUST READ

FUCHS LUBRICANTS SOUTH AFRICA Introduces Enhanced Distribution Strategy in the Western...

FUCHS LUBRICANTS SOUTH AFRICA is excited to announce a significant transformation in its distribution strategy within the Western Cape. This strategic shift marks a...

RECOMMENDED

Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.