The Congress of South African Trade Unions (COSATU) urges government to provide further Fuel Levy relief to cushion embattled workers and the economy from the massive fuel price hikes that have wreaked havoc since the commencement of the war in the Persian Gulf.
Whilst we appreciate the modest initial decrease in diesel prices due to come into effect, a further rise in petrol prices will be yet another painful blow that millions of struggling workers and commuters, and an already stagnant economy stuck at anemic 1% growth, simply cannot afford.
We fear that workers, society and the economy will not cope with the planned end in the fuel levy relief in July if international oil and fuel prices continue to remain abnormally high and even rise. Oil and fuel supplies and prices may also take some time to return to pre-war levels even once the war ends.
Diesel is critical for the public and private transport that workers depend upon as is paraffin for millions of working-class families. Workers who are already drowning in debt, supporting up to seven relatives each and spending an average of 40% of their meagre wages on transport; will not be able to continue to survive such steep petrol, diesel, gas and paraffin price prices.
The most important source of relief for workers, society and the economy, is to maintain the fuel levy relief whilst oil and fuel prices remain 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 to commuters.
It is critical that the Reserve Bank spare society further pain by not increasing the repo rate as this source of inflation is external and not domestic driven. Workers’ meagre wages must be protected from further bleeding.
The private sector must end its investment strike and contribute towards an economic and social relief package to kickstart a stagnant economy and give hope to an under-siege working class. Government with the support of public and private financial institutions must put in place a bold stimulus package to kickstart an under-siege economy.
COSATU will continue to engage government on a package of bold, progressive and decisive 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