The Confederation of Trade Unions, Cosatu, has called on the government to come up with other measures to reduce the sensitivity of the increase in the price of petrol and diesel, which is expected to happen in early May.
At the beginning of the month, the price of a liter of petrol 93 and 95 increased by R3.06. Diesel 500ppm increased by R7.37 and 50ppm increased by R7.51. A liter of paraffin increased by R11.67.
This price increase is caused by the war between Iran and Israel (allied with the United States of America). It interfered with the transportation of crude oil eStrait of Hormuz.
The government announced that it will temporarily reduce the petrol tax by R3 from R4.10 to R1.10 per litre. Diesel has dropped from R3.93 to R0.93 per liter this month and will be revised next year. This he said will cost the economy R6 billion.
The government on its page on X, stated that the increase in the price of oil and the change in the strength of the rand, is expected to increase the price of petrol in the coming months.
Cosatu said the latest reports from the Central Energy Fund, show that the price of a liter of petrol may increase by R3, R10 for diesel and R7 for paraffin.
“This is another blow to the economy which has been growing by 1% for more than 10 years and in the fight against unemployment rates of 41.1%. The International Monetary Fund has already lowered the forecast for economic growth in 2026, to 1% from 1.4%,” said Cosatu.
It said that the reduction in petrol tax for one month is a good step but more is urgently needed. It said it fears that workers and the economy will not be able to withstand another increase in the price of petrol, diesel and kerosene.
“Diesel is important for the public transport that workers depend on, as well as paraffin used by thousands of families. The workers are suddenly drowning in debt, they take care of seven relatives per worker, they spend 40% of their salary on transport and they will not be able to withstand the increase in the price of petrol, diesel and paraffin.”
Cosatu said that the tax on petrol and other taxes must be reduced. It also mentioned that ways to reduce the price of paraffin must be found. Another thing is to make public transport cheaper.