The Congress of South African Trade Unions (COSATU) welcomes the positive drop in fuel prices of R2.01 and R1.96 per litre for petrol, R3.13 and R3.58 for diesel and R5.23 for paraffin. 

These substantial cuts will provide badly needed comfort for millions of struggling commuters and an economy battling to emerge from weak 1% growth.  It will help lessen inflationary and cost of living increase pressures that have brought additional pain to an already embattled working class.

Whilst appreciating this relief, oil prices have not yet returned to their pre-Middle East war levels.  Fuel prices remain suffocatingly high and may continue for some time given the ongoing tensions in the Middle East, the on off ceasefire and the time it will take for oil and gas supplies to return to full capacity.   We urge government to continue fuel levy relief to help cushion commuters and the economy during this volatile period.

Government needs to return to Nedlac to engage labour and business on a comprehensive review of the fuel prices, including the fuel taxes and levy that constitute a third of the prices, on possible options to reduce the price of fuel that has become an albatross around the ability of the working class to take care of their families and an economy that needs to move from jobless 1% growth to the 3% plus necessary to slash unemployment.

Investments in public transport need to be ramped up, including Metro Rail and Transnet, as must efforts to transition towards electric vehicles, as these will help shield commuters and the economy from the inevitable international oil price volatile fluctuations.

COSATU will be requesting urgent engagements on these burning issues for workers and the economy at Nedlac.

Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za