This is after the Department of Mineral of Petroleum Resources confirmed fuel price increases across the board, with motorists driving both petrol- and diesel-powered vehicles facing an increase of around R3 to the fuel price.
COSATU said this latest increase marks a more than 25% and 50% increase over the past few months.
Spokesperson, Matthew Parks, said it is disappointing because this is just another blow to the working class.
“This is not just a fuel price issue. It is a cost-of-living crisis. Workers spend up to 30% of their wages on transport. A R3 per litre hike wipes out wage increases. It pushes taxi and bus fares up and threatens to make food even more expensive for working class families. It diverts money that we cannot spare out of the economy,” said Parks.
He added that fuel price increases have pushed inflation beyond the Reserve Bank’s target range, sparking repo rate hikes and pushing workers deeper into debt and ” suffocated already weak economic growth”. He adds that it’s driven the rise of unemployment in the past two quarters.
He notes that fuel levy relief would be a major help.
“Government did well to provide R18 billion Fuel Levy relief in its initial response to the fallout from the war. This helped cushion workers, commuters, SMMEs and the economy from devastating hikes in petrol and diesel prices. It helped reduce the rise in inflation and prevented one repo rate hike. It is a tragedy that Treasury and the Department of Mineral and Petroleum Resources failed to act now to provide some cushion for commuters and the economy to manage this brutal shock.”
Similarly, the Motor Industry Staff Association’s (MISA) Phakamile Hlubi-Majola said that fuel levy relief at this point is not an option, it is a matter of survival.
“Just a month ago, MISA warned that fuel prices were driving workers below the survival line, with transport and electricity already consuming 65.8% of a minimum wage before food is even bought… This latest increase lands on households with nothing left to absorb it,” said Hlubi-Majola.
On behalf of MISA, she’s calling for a temporary reduction of the General Fuel Levy by at least R3 a litre on petrol and diesel with oil prices at current levels, as well as for similar relief for households reliant on paraffin.
“MISA is also demanding urgent engagement at NEDLAC to review the levies and margins built into every litre. Workers are being crushed between fuel, electricity, and food costs. Relief is not optional, it is a matter of survival.”
Meanwhile, the General Industries Workers Union of South Africa (GIWUSA) is urging the government to act in the interest of consumers, noting that the fuel price crisis is a policy failure.
GIWUSA’s president, Mametlwe Sebei, has demanded the immediate suspension of the General Fuel Levy and the Road Accident Fund Levy, the expropriation and recommissioning of closed refineries such as SAPREF and Engen, the full utilisation of the Strategic Fuel Fund to build adequate fuel reserves and its use to insulate the people and economy from global supply shocks, a “massive” public investment in hydrogen fuels, solar, and wind, as well as the public ownership of the petroleum industry under democratic working-class control.
“This crisis is manufactured by policy, private ownership of the petroleum industry, and the failure to plan for national resilience. Government can act. It has acted before. It must act now… October’s record petrol price is not inevitable. It is a choice. Government must choose differently—or the working class will hold it accountable,” said Sebei in a statement.
There are also growing fears that illicit operators will be incentivised to sell adulterated fuel, as incoming fuel prices shock consumers. The South African Petroleum Retailers Association (SAPRA) has cautioned against the possibility hereof and urged consumers and dealers to report suspected illegal activity to SAPRA’s whistleblower platform at sapra.co.za/whistleblower.
“SAPRA encourages motorists to plan trips, consolidate journeys, maintain vehicles, check tyre pressure regularly and adopt fuel-efficient driving habits. Consumers are also encouraged to support reputable, licensed and compliant service stations that prioritise safety, compliance and fuel quality,” read SAPRA’s statement.
*This article has been updated to include comment by SAPRA and GIWUSA.
