The South African Federation of Trade Unions (SAFTU) is deeply concerned over the recent announcement of petrol and diesel price hikes, set to take effect on Wednesday (07 Feb 2024). The increase, with unleaded petrol rising by 75c a litre and diesel by up to 73c a litre, poses significant challenges to the already burdensome high cost of living experienced by South African working people.
These hikes will undoubtedly have an effect on the everyday lives of motorists and commuters. The inland prices of 95 unleaded petrol going up to R23.24 a litre and diesel prices soaring to R21.36 a litre, will heighten the financial strain on households that are already grappling with economic pressures of high interest rates and food prices.
SAFTU recognizes that the burden of these increases will disproportionately impact families of poor workers who have been forced to rely on road transport due to the collapse of the Passenger Railway of South Africa (PRASA). It will also add to the burden of middle-class households who are languishing in unsustainable debt due to high debt servicing costs.
Other impacts of these fuel hikes will come from the prices of paraffin and gas. Due to the crisis of load shedding that has become chronic, households have moved back to using alternative energy sources of gas, paraffin, and wood. The increases in the maximum retail price for LP gas and illuminating paraffin will exacerbate the financial burdens.
As a federation committed to advocating for the rights and welfare of workers and marginalized communities, we call upon world governments to prohibit speculation on commodities such as oil. It is this exotic development in price gauging that also contributes to the volatility of fuel prices, especially when there is instability in some parts of the world.
