COSATU statement on the Fuel price decrease tomorrow

The Congress of South African Trade Unions welcomes the news of a reduction in the price of fuel. This follows the department of energy’s announcement that on Wednesday the price of all grades of petrol will drop by 19 cents per litre, all grades of diesel by 54 cents and illuminating paraffin by 68 cents with liquid petroleum gas (LPG) falling by 32 cents per kg.

This drop though is still not enough because it will likely be repealed by the pending tax increase of 25 cents that will see 16 cents going to the general fuel levy and 9 cents to the Road Accident Fund.

Only a further reduction and a steady drop can give some respite to lower-income earners and poor households, in particular, because they are struggling to survive under these difficult economic conditions. Hopefully, this reduction will continue because workers are spending too much money travelling to work and they are sliding deeper and deeper int debt because of declining wages.

An extra decrease in the price of fuel will be able to boost the purchasing power of most South Africans and hopefully, lift the economy and help it recover.

COSATU is still waiting on the government to release the research report that was conducted by the department of energy looking into the possibility of a fuel price cap because workers cannot be left to the vagaries of the markets indefinitely. We are also calling on our government to consider increasing subsidies for public transport and improve the quality and efficiency of our public transport system, particularly in poorer communities and rural areas.

Issued by COSATU
Sizwe Pamla (Cosatu National Spokesperson) Tel: 011 339 4911
Fax: 011 339 5080
Cell: 060 975 6794