Against a background of the hike in fuel prices in our country, this came into effect just the last two days. There is a loud alarming views and general concern by the working class and even some economists blaming either the President of the Republic of South Africa or the Organization of Petroleum Exporting Countries (OPEC). This blame game is a result of the recent fuel prices hike, the fifth time oil price increase in our country in 2018 and which is now at its highest level ever.
The general public, of course out of frustrations instead of understanding the current economic situation and capitalist system opportunistically put blame on the doors of the President of the Republic of South Africa. On the other hand the economists put blame on the doors of the Petroleum Exporting Countries (OPEC) that they operate like a cartel by colluding on setting world oil prices. Immediately the economists accused OPEC, the South African Petroleum Industry Association (Sapia) has come out in defence of OPEC.
Capitalists, liberals and their cronies always claim that we must understand that oil prices are determined by market forces - demand and supply of oil in the international oil market. It is also important to understand that markets, by themselves, even when they are stable, often lead to high levels of inequality, outcomes that are widely very unfair to the working class. With that understanding it is important to note and understand who benefit with high oil prices and who suffers with high oil prices especially in South Africa.