The South African Federation of Trade Unions (SAFTU) welcomes a slight decrease in fuel prices as of today, July 3, 2024. This follows a previous decrease on the 5th of June. The reduction in fuel prices is expected to bring some relief to motorists as the cost of living has become exorbitantly high.
The working class is struggling to keep up with the rising cost-of-living whereby fuel, transport fares, electricity, groceries and municipal service tariffs have gone up. The decrease in fuel prices can positively impact the prices of goods and services, as transportation costs are a significant component of input expenses for businesses. Lower fuel prices can lead to reduced costs for transporting goods, which, in turn, can reduce prices for consumers.
The decrease in fuel prices is important for workers who own vehicles as this will lower the cost of petrol and diesel per litre. The impact of this decrease might not be enjoyed by the rest of the working people who rely on public transport such as taxis and buses, as taxi industry associations and bus companies do not reduce the commuter fare immediately or following a prolonged decline in fuel costs. Government must intervene to ensure that taxi and bus fares that were hiked due to fuel price increases are decreased to reflect the reduction in prices of fuel. That will directly lower the cost of commuting, enabling workers to avoid being financially overstretched and have more disposable income to spend on other necessities such as food, housing, healthcare, and education, thus relieving them of the current pressure.
