SAFTU: Fuel levy reduction no panacea for rise in living costs
Updated | By Eva Chipa
The South African Federation of Trade Unions (SAFTU) says although the temporary reduction in the fuel levy is welcome, it won't quell the anger among workers over the steep rise in living costs.
Minister of Finance Enoch Godongwana announced in Parliament on Thursday that the general fuel levy will be reduced by R1.50 a litre for the period between 16 April to 31 May.
“Though the reduction in the fuel levy is likely not adequate to sustain a downward pressure on the prices of fuel, we anticipate that it will nonetheless have some temporary downward pressure or at least contain the prices from rising further in the interim period,” says SAFTU spokesperson Trevor Shaku.
Shaku says SAFTU also welcomes the formations of the working class to organise a resistance to the drastic increases in prices of food, electricity and fuel.
“We urge workers to join these movements and build a united front to demand government do more than the once-off R1 50 a litre relief.
“This reduction in the fuel levy must be seen in this light: a concession to the impending resistance against price hikes of fuel, and to add, of electricity.”
He adds that fuel prices were already on the rise before the Russian invasion of Ukraine, which just exacerbated the situation.
“The inflation on oil and fuel is usually imported, and as such, is influenced by global economic and political forces such as the current invasion of Ukraine by Russia, and the sanctions that accompanied it.
“But even before the war, fuel prices were rising.”
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