IF we look at the impact on the economy of the price of fuel, it makes one wonder what impact it would have if the price was radically lowered to 50% of the present price. People would travel to destinations not previously considered, due to the cost, and support all of the businesses such as fuel stations, shops along the way including, lodges and hotels, etc.
Fares to and from work would be cheaper, which would impact positively on attendance, improving production. Vehicle sales would soar, and retail and manufacturers would benefit and employ additional manpower, thus improving the unemployment statistics.
Employment would increase across all sectors that flourish.
Air passenger numbers would increase, supporting our flailing SAA and other services.
The loss of income from the sale of fuel could be recovered from an increase in VAT, which would be recovered from all sectors of the community and not just the motorists.
This seems logical to me and maybe I am not seeing the bigger picture, but the present picture does not seem logical either.
Nigel Venter, Port Elizabeth
Letters
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