The Congress of South African Trade Unions (COSATU) is deeply concerned about the impact of the further massive increases in fuel prices of R1.07 per litre of petrol and R2.71 and R2.92 per litre of diesel. This is on top of earlier devastating hikes in fuel prices. This is a painful blow that millions of struggling workers and commuters, and an already stagnant economy stuck at an anemic 1% growth and a devastating 43.8% unemployment rate just cannot afford. 

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

Workers, society and the economy cannot absorb continuous fuel price hikes. Oil and fuel supplies and prices will take time to return to pre-war levels even when the war in the Persian Gulf inevitably ends. 

Diesel is critical for the public transport that most workers depend upon whilst petrol hikes hit those with their own cars. Workers who are already drowning in debt, supporting 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. Government must urgently return to Nedlac for engagements on short- and long-term options to reduce the fuel taxes and levy that consume a third of the fuel prices. 

Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za