The Congress of South African Trade Unions (COSATU) is deeply concerned about the impact of the further massive increase in diesel prices of over R1.38 and R1.23 per litre of diesel.  This is on top of earlier devastating hikes in diesel prices.  This is a painful blow that millions of struggling workers and commuters, and an already stagnant economy stuck at an anemic 1% growth simply cannot afford. 

We welcome the 52 cents relief in petrol prices which will provide some comfort for embattled motorists.

Government’s earlier temporary fuel levy suspension provided invaluable relief for workers and the economy as well as helping to stave off inflationary pressures. 

We fear that workers, society and the economy will not manage continuous diesel price hikes.  Oil and fuel supplies prices will take time to return to pre-war levels even when the war in the Persian Gulf ends. 

Diesel is critical for the public and private transport that workers depend upon.  Workers who are already drowning in debt, supporting many unemployed relatives and spending an average of 40% of their meagre wages on transport; will not be able to continue to survive such painful petrol, diesel, gas and paraffin price hikes.

The most important source of relief for workers, society and the economy is to reintroduce the fuel levy relief whilst oil and fuel prices remain abnormally high.  This is the most impactful and cost-effective solution to this global crisis.  Additional relief should be sought by making public transport more affordable for commuters.

The Reserve Bank must spare society further pain by not increasing the repo rate as this source of inflation is external and not domestic driven and workers’ meagre wages must be protected from further bleeding. 

COSATU will continue to engage government on urgent measures to cushion workers, the poor and the economy from this global crisis.

Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za