Cutting your nose to spite your face

Once the assembly elections are over next month, it’s almost certain that we’ll see another round of oil price hikes, but how large the hikes will be is really the question, and whether they’ll be enough to cover the yawning deficits of the public sector oil companies. The losses or under-recoveries rose from R9,274 crore in 2003-04 to a whopping R1,03,292 crore in 2008-09, fell to R46,051 crore in 2009-10 and rose to an estimated R78,000 crore for the year just gone by.

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